What happens if Carls Jr. does not respond to a site proposal within the specified timeframe?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
you should not acquire any interest in a site for your Franchised Restaurant until you have been approved as a franchisee (or, if you already are a franchisee, until you have been approved for expansion) and we have accepted the site in writing. We generally do not own the Franchised Restaurant premises and lease them to franchisees.
For each proposed site for a Franchised Restaurant, you will, if requested by us, submit a Franchise Site Application to us. In addition, you may have to submit a complete real estate package (containing that information as we may reasonably require) for a proposed site, which you reasonably believe conforms to our then-current site selection criteria, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by CJR or our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. Within 30 days after receipt of these documents, and any information which CJR may reasonably require, we will advise you in writing whether we have accepted a particular site; however, CJR has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with CJR or its affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. Our acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in our sole discretion.
We may refuse to accept a site for a proposed Franchised Restaurant unless you demonstrate sufficient financial capabilities, in our sole judgment, applying standards consistent with criteria we use to establish Carl's Jr.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if Carls Jr. does not respond to a franchisee's site proposal within the specified timeframe, the site will be deemed not accepted. The initial review period for a site proposal is 30 days after Carls Jr. receives all required documents and information. However, this 30-day period applies to the standard franchise agreement. For franchisees entering into a Development Agreement, Carls Jr. has 45 days to respond.
Carls Jr. has no obligation to review any development proposal if the franchisee or its affiliates are not in full compliance with all agreements with Carls Jr. or its affiliates. The acceptance or refusal to accept a site may be subject to reasonable conditions determined at Carls Jr.'s sole discretion.
This aspect of the agreement is important for prospective franchisees to understand, as site selection is a critical factor in the success of a restaurant franchise. Franchisees should ensure they submit complete and accurate information in their site proposals and maintain compliance with all agreements to ensure timely review by Carls Jr. Failing to meet these obligations could result in delays or deemed rejection of the proposed site.