What happens if a Carls Jr. developer makes a material misrepresentation to CJR?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) CJR discovers that Developer made a material misrepresentation or omitted a material fact in the information that was furnished to CJR in connection with its decision to enter into this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a developer makes a material misrepresentation or omits a material fact in the information furnished to CJR (Carls Jr. Restaurants LLC) in connection with its decision to enter into the Development Agreement, it constitutes grounds for a material breach.
Specifically, CJR can consider it a breach if they discover that the developer provided false information or left out important details that influenced CJR's decision to approve the agreement. This provision protects Carls Jr. from being misled during the initial stages of the agreement.
This clause highlights the importance of transparency and honesty when a prospective developer is dealing with Carls Jr. It emphasizes that all information provided must be accurate and complete, as any misrepresentation or omission could have significant legal consequences, including potential termination of the development agreement.