How long is the renewal term for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
We may file suit in the jurisdiction where our principal offices are located, where you reside or do business, where the Franchised Restaurant is or was located or where the claim arose. | | w. Choice of law | Section 31.A. | Subject to applicable state law, Tennessee law applies. |
| Average Revenue2 | $1,586,460 |
|---|---|
| Median Revenue | $1,559,367 |
FRANCHISE AGREEMENT
| | 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. |
| Provision | Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| c. | Requirements for you to renew or extend d. Termination by you | Section 2.B. Not Applicable | In order to renew at the end of the Initial Term you must: give timely notice; sign general release; comply with training requirements; be in good standing; not be in default under any agreement with us and our affiliates; not be in default beyond the cure period under any real estate or equipment lease or financing instrument relating to the Franchised Restaurant or any agreement with any vendor or supplier to the Franchised Restaurant; have the right to remain in possession of the Franchised Location for the Renewal Term; remodel in accordance with our then-current standards; and pay a renewal fee. |
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 franchise agreement has an initial term of 20 years, starting from the date the franchised restaurant opens for business. At the end of the initial term, a franchisee has the option to renew the agreement for either 10 years or 5 years.
Carls Jr. outlines specific requirements a franchisee must meet to be eligible for renewal. These include providing timely notice of intent to renew, signing a general release, fulfilling all training requirements, and maintaining good standing with Carls Jr. The franchisee must not be in default under any agreement with Carls Jr. or its affiliates, or under any real estate or equipment lease or financing instrument related to the franchised restaurant.
Furthermore, to renew the Carls Jr. franchise, the franchisee must have the right to remain in possession of the franchised location for the renewal term, remodel the restaurant to meet Carls Jr.'s then-current standards, and pay a renewal fee. A significant condition is that the franchisee must sign Carls Jr.'s then-current form of Franchise Agreement, which may have terms that differ from the original agreement, potentially affecting royalty fees and advertising obligations. This means that the terms of the franchise agreement can change upon renewal, which is a common practice in the franchise industry.