How long does Carls Jr. have to review and approve the proposed construction plans for a Carls Jr. restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ll be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Franchisee shall submit proposed construction plans, specifications and drawings for the Franchised Restaurant ("Plans") to CJR and shall, upon CJR's request, submit all revised or "as built" Plans during the course of such construction. CJR will review the Plans and notify Franchisee within 30 days after CJR receives the Plans, or such longer period as CJR requires, whether the Plans are approved. CJR's approval shall not be unreasonably withheld. Once CJR has approved the Plans and Franchisee has signed
each page of the Plans acknowledging the approval and Franchisee's obligations for compliance, no substantial change shall be made to the Plans without the prior approval of CJR, which shall not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, after a franchisee submits proposed construction plans, specifications, and drawings for their restaurant, Carls Jr. will review these plans. Carls Jr. will then notify the franchisee within 30 days of receiving the plans whether they are approved. However, Carls Jr. may require a longer period to complete the review.
Carls Jr.'s approval of the plans will not be unreasonably withheld. Once the plans are approved and the franchisee acknowledges their obligations for compliance by signing each page, no substantial changes can be made without Carls Jr.'s prior approval, which also cannot be unreasonably withheld. For any contemplated changes to the plans during construction, Carls Jr. has 10 business days after receipt to approve or disapprove the changes.
The franchisee is prohibited from starting site preparation or construction until they receive written notification from Carls Jr. that the plans have been approved. All construction must follow the approved plans and comply with all applicable laws, ordinances, and local rules. The restaurant cannot open if construction does not substantially comply with the approved plans, and the franchise agreement may be terminated if the non-compliance is not resolved within a commercially reasonable time. Carls Jr. may provide guidance during the restaurant's development and may periodically inspect the premises during development.