What happens if a Carls Jr. Franchised Restaurant is not constructed in substantial compliance with approved plans?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is prohibited from beginning site preparation or construction prior to receiving written notification from CJR that it has approved the Plans. All construction must be in accordance with Plans approved by CJR and must comply in all respects 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 CJR, and this Agreement may be terminated if such non-compliance is not cured within a commercially reasonable amount of time. CJR may furnish guidance to Franchisee in developing the Franchised Restaurant and may periodically inspect the premises during its development.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchised restaurant may not open if construction has not been performed in substantial compliance with the plans approved by CJR. Furthermore, the Franchise Agreement may be terminated if the non-compliance is not corrected within a commercially reasonable timeframe. This means that franchisees must adhere strictly to the approved construction plans to avoid delays in opening and potential termination of their franchise agreement.
Carls Jr. requires franchisees to submit proposed construction plans, specifications, and drawings for the Franchised Restaurant to CJR for approval. CJR will review the plans and notify the franchisee within 30 days, or longer if required, whether the plans are approved. Once approved, no substantial changes can be made without prior approval from CJR. Franchisees are prohibited from starting site preparation or construction before receiving written approval of the plans from CJR.
Carls Jr. may furnish guidance to the franchisee during the development of the Franchised Restaurant and may periodically inspect the premises during its development. This oversight helps ensure compliance with the approved plans and Carls Jr.'s standards. The franchisee is responsible for ensuring that the construction plans comply with applicable ordinances, building codes, permit requirements, and lease restrictions, and must use registered architects, registered engineers, and professional and licensed contractors.