What is the initial franchise fee for each Carls Jr. Franchised Restaurant required to be developed under the Development Agreement?

According to the 2025 Carls Jr. Franchise Disclosure Document, the initial franchise fee for each franchised restaurant required to be developed under the Development Agreement is $25,000. This fee is payable upon the execution of each Franchise Agreement.

However, the FDD also mentions a Development Fee of $10,000 for each restaurant that the developer agrees to develop within the Development Territory during the Development Term. This Development Fee is paid when the Development Agreement is signed and is considered fully earned and non-refundable by Carls Jr. upon receipt.

Importantly, the $10,000 Development Fee is credited towards the $25,000 Initial Franchise Fee when the Franchise Agreement is executed for each specific restaurant. Therefore, while the initial franchise fee is $25,000, developers who have already paid the $10,000 development fee effectively pay an additional $15,000 at the time they sign the Franchise Agreement.