Does the Lease Addendum for a Carls Jr. franchise apply during any renewal term of the lease?

According to the 2025 Carls Jr. Franchise Disclosure Document, the provisions outlined in the Lease Addendum apply throughout the entire term of the lease, which includes any renewal terms. Specifically, this ensures that the terms of the Lease Addendum will remain in effect even if the lease is extended or renewed.

This has significant implications for a prospective Carls Jr. franchisee because it provides clarity and consistency regarding the lease terms throughout the duration of the franchise agreement. For instance, any rights granted to Carls Jr. as a third-party beneficiary, such as the option to take an assignment of the tenant's rights and obligations under the lease upon expiration or termination, remain enforceable during any renewal term. This protects Carls Jr.'s interests and ensures the continued operation of the restaurant.

Furthermore, in the event of any conflict between the standard lease terms and the Lease Addendum, the Lease Addendum will take precedence. This clause remains effective during any renewal term, offering continuous protection and clarity. This ensures that the specific requirements and modifications outlined in the Lease Addendum, which are often crucial for the operation of a franchised Carls Jr. restaurant, are upheld throughout the entire lease period, including renewals.