What kind of site selection assistance does Carls Jr. provide to franchisees?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
on 27 DA: Section 22 | Item 17 |
ITEM 10 FINANCING
Neither we nor any of our agents or affiliates offer direct or indirect financing to you or guarantee any of your notes, leases or obligations.
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
CJR's Pre-Opening Obligations
Before you open your Franchised Restaurant, we will:
- 1. Provide you with the following site selection assistance: (A) CJR's site selection guidelines and, as you may request, a reasonable amount of consultation with respect thereto; and (B) such on-site evaluation as we may deem advisable as part of our evaluation of your request for site acceptance. (Development Agreement, § 5.B and Franchise Agreement § 4.B.)
- 2. We will advise you in writing within 45 days after receipt of all documents that we require whether we have accepted a particular site; however, we have no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with us or our affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. (Development Agreement, § 5.D and Franchise Agreement § 4.D.)
- 3. Provide you with any training we require. (Development Agreement, § 5.F.; Franchise Agreement, §6.A. & 6.I.)
- 4. Provide you electronic access to CJR's Development Guide and OPM, which contain mandatory specifications and standards relating to construction of Carl's Jr. Restaurants and information relating to your other obligations under the Development Agreement and Franchise Agreement. (Development Agreement, § 6; Franchise Agreement, §9)
5. Furnish you with prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design image, interior layout, décor, fixtures, equipment, signs, furnishings, storefront and color scheme. (Development Agreement, § 6). It will be your responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the location of your Franchised Restaurant ("Franchised Location"), and you must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. You must use only registered architects, registered engineers, and professional and licensed contractors.
We will review the construction plans for the proposed Franchised Restaurant and notify you within 30 days after we receive the plans, or such longer period as we require, whether the plans are approved. (Franchise Agreement, §4.B.).
- 6. Provide you with a final inspection of the Franchised Restaurant, if we choose to conduct one, and provide you with express written authorization to open the Franchised Restaurant if you have complied with all conditions. (Franchise Agreement, §4.K.)
- 7. Provide you electronic access to our confidential and proprietary OPM, which contains information and knowledge that is unique, necessary and material to the Carl's Jr. System. The OPM remains our property. We may revise the contents of the OPM and you agree to comply with each new or changed section. (Franchise Agreement, §9). We will permit you to inspect a copy of the OPM before you purchase a franchise, if you first sign a Confidentiality Agreement, which is attached as Exhibit F.
- 8. Provide you with consultation and advice at no additional cost with regard to construction or renovation and operation of the Franchised Restaurant, building layout, furnishings, fixtures and equipment plans and specifications, training, purchasing and inventory control and those other matters as we deem appropriate.
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, Carls Jr. does not select the site for the Franchised Restaurant; the franchisee does, subject to Carls Jr.'s acceptance. Before a franchisee opens their restaurant, Carls Jr. will provide site selection guidelines and, upon request, offer a reasonable amount of consultation. Carls Jr. may also conduct an on-site evaluation as part of their evaluation of the site.
The franchisee must submit a Franchise Site Application and, if requested, a complete real estate package with information that conforms to Carls Jr.'s site selection criteria. This includes demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, the nature of nearby businesses, commercial characteristics (like purchase price, rental obligations, and lease terms), and the size, appearance, physical characteristics, and site plan of the premises.
Carls Jr. will advise the franchisee in writing whether they have accepted a particular site within 45 days after receiving all required documents. However, Carls Jr. has no obligation to review any development proposal if the franchisee is not in full compliance with all agreements. If Carls Jr. does not respond within the 45-day time period, the site will be deemed not to have been accepted. Carls Jr.'s acceptance of a site may be subject to reasonable conditions, determined at their sole discretion. Carls Jr. may refuse to accept a site unless the franchisee demonstrates sufficient financial capabilities to properly develop, operate, and maintain the Franchised Restaurant, based on standards consistent with criteria used in comparable market areas.