If I meet the requirements, what are the options for the renewal term length for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 2.A. | 20 years from the date the Franchised Restaurant opens for business. |
| b. Renewal or extension of the term | Section 2.B. | You can renew for a Renewal Term of 10 years or, at your option, 5 years. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–66)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the initial franchise term is 20 years, starting when the Franchised Restaurant opens. If you meet the requirements for renewal, you have the option to renew the franchise for either 10 years or 5 years.
To renew the Carls Jr. franchise, you must provide timely notice, sign a general release, meet training requirements, be in good standing, and not be in default under any agreement with Carls Jr. or its affiliates. You also cannot be in default beyond the cure period under any real estate or equipment lease, financing instrument related to the Franchised Restaurant, or any agreement with a vendor or supplier.
Additionally, you must have the right to remain in possession of the Franchised Location for the Renewal Term, remodel according to Carls Jr.'s current standards, and pay a renewal fee. A significant point to consider is that you will be required to sign the then-current form of the Franchise Agreement, which may have terms that differ from your original agreement. These differences could include changes to royalty fees and advertising obligations, potentially impacting the profitability and operational requirements of your Carls Jr. franchise.