What is the franchisee's responsibility regarding construction plans and specifications for a Carls Jr. restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to CJR's satisfaction, any development training required by CJR. Franchisee shall pay CJR, for each person attending development training, a tuition fee as established by CJR from time to time. Franchisee also may attend optional development training as offered by CJR from time to time, subject to payment of a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Franchisee shall submit proposed construction plans, specifications and drawings for the Franchised Restaurant ("Plans") to CJR and shall, upon CJR's request, submit all revised or "as built" Plans during the course of such construction. CJR will review the Plans and notify Franchisee within 30 days after CJR receives the Plans, or such longer period as CJR requires, whether the Plans are approved. CJR's approval shall not be unreasonably withheld. Once CJR has approved the Plans and Franchisee has signed
each page of the Plans acknowledging the approval and Franchisee's obligations for compliance, no substantial change shall be made to the Plans without the prior approval of CJR, which shall not be unreasonably withheld. If, in the course of construction, any such change in the Plans is contemplated, CJR's approval must first be obtained before proceeding. CJR shall approve or disapprove Plan changes within 10 business days after receipt.
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from CJR that it has approved the Plans.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchisee is responsible for preparing all required construction plans and specifications to suit the shape and dimensions of the Franchised Location. These plans and specifications must comply with applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. Carls Jr. will furnish prototypical plans and specifications for a Carls Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme.
The franchisee must use only registered architects, registered engineers, and professional and licensed contractors. The franchisee must submit proposed construction plans, specifications, and drawings for the Franchised Restaurant to CJR and, upon request, submit all revised or "as built" Plans during construction. Carls Jr. will review the Plans and notify the franchisee within 30 days after receiving them, or such longer period as CJR requires, whether the Plans are approved; such approval shall not be unreasonably withheld.
Once Carls Jr. has approved the Plans and the franchisee has signed each page acknowledging the approval and compliance obligations, no substantial change shall be made without prior approval from Carls Jr., which shall not be unreasonably withheld. If any change in the Plans is contemplated during construction, Carls Jr.'s approval must be obtained before proceeding, and Carls Jr. shall approve or disapprove Plan changes within 10 business days after receipt.
The franchisee is prohibited from beginning site preparation or construction before receiving written notification from Carls Jr. that it has approved the Plans. All construction must be in accordance with Plans approved by Carls Jr. and must comply with applicable laws, ordinances, and local rules and regulations. The Franchised Restaurant may not open if construction has not been performed in substantial compliance with Plans approved by Carls Jr., and the Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. Construction of the Franchised Restaurant shall commence within 6 months after the Property Control Date.