In the Carls Jr. Lease Addendum, who are the parties involved in the Lease Agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS:
Pursuant to the Lease, Landlord will lease or has leased to Tenant certain real property as defined in the Lease ("Premises") for the operation of a franchised Carl's Jr. Restaurant ("Restaurant");
Tenant will develop and operate the Restaurant pursuant to a franchise agreement (the "Franchise Agreement") with Carl's Jr. Restaurants LLC or its affiliates (collectively "CJR"), and the Lease is contingent upon Tenant's execution of the Franchise Agreement with CJR; and
The Franchise Agreement requires, among other things, that the Lease contain certain provisions. Landlord and Tenant desire to modify the Lease to add those required provisions as set forth below, and agree that the terms and provisions of this Lease Addendum are hereby deemed incorporated into and made a part of the Lease.
NOW, THEREFORE, notwithstanding anything to the contrary elsewhere in the Lease, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the parties involved in the Lease Agreement, as indicated in the Lease Addendum, are the Landlord and the Tenant. The Lease Addendum modifies the original lease agreement between these two parties to incorporate provisions required by Carls Jr.
The Lease Addendum states that the Landlord leases or has leased property to the Tenant for the operation of a franchised Carls Jr. Restaurant. The Tenant will then develop and operate the Restaurant under a franchise agreement with Carl's Jr. Restaurants LLC. The execution of this franchise agreement is a contingency for the lease.
Carls Jr. is considered a third-party beneficiary in this addendum, which means that while they are not a direct party to the lease, they have rights that they can enforce under the Lease Addendum. This ensures that Carls Jr. can protect its brand and operational standards at the franchised location. The Landlord and Tenant are required to provide Carls Jr. with copies of all relevant documents and notices pertaining to the lease.