If a Carls Jr. franchisee fails to promptly make alterations and modifications to distinguish the Franchised Location after termination, what right does CJR have?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Unless CJR directs Franchisee to temporarily maintain the existing appearance of the Franchised Location while CJR determines if it will exercise its option under Section 23, Franchisee promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as CJR may request for that purpose. If Franchisee fails to promptly make these alterations and modifications, CJR shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from CJR) to do so without being guilty of trespass or other tort.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchisee fails to promptly alter and modify the franchised location to differentiate it from its former appearance after termination, Carls Jr. has the right to make those alterations and modifications themselves.
Specifically, Carls Jr. can take action to modify the location to clearly distinguish it from its previous appearance as a Carls Jr. restaurant. This includes making specific changes that Carls Jr. requests for this purpose.
The costs associated with these alterations and modifications will be borne by the franchisee. Carls Jr. will invoice the franchisee for these expenses, and the franchisee is obligated to pay upon receipt of the invoice. Furthermore, Carls Jr. is allowed to enter the premises to perform these modifications without being considered guilty of trespass or any other tort. This provision ensures that Carls Jr. can protect its brand and image even after a franchise agreement has been terminated.