What is the length of the initial franchise term 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. This term begins when the franchised restaurant opens for business. After the initial term, a franchisee has the option to renew the franchise for an additional term.
The Carls Jr. franchise agreement allows for renewal terms of either 10 years or 5 years, depending on the franchisee's choice. To qualify for renewal, franchisees must meet several conditions. These include providing timely notice of renewal, signing a general release, meeting training requirements, and maintaining good standing with Carls Jr. and its affiliates.
Additionally, franchisees must not be in default under any agreements with Carls Jr. or any real estate, equipment lease, or vendor agreements related to the restaurant. They must also have the right to remain in possession of the franchised location for the renewal term, remodel the restaurant to current standards, pay a renewal fee, and sign the then-current form of the Franchise Agreement. The terms of the renewed agreement may differ from the original, potentially affecting royalty fees and advertising obligations.