How long is the term of the Agreement for each Carls Jr. Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
This Commencement Date Addendum is dated as of and is made between Carl's Jr. Restaurants LLC ("CJR") and ("Franchisee"). CJR and Franchisee entered into a Franchise Agreement dated (the "Franchise Agreement"). Pursuant to the terms of the Franchise Agreement, the parties agreed to sign this Commencement Date Addendum upon the opening of the Carl's Jr. Franchised Restaurant referenced in the Franchise Agreement (the "Franchised Restaurant"). Accordingly, CJR and Franchisee agree that the Franchise Agreement is modified as follows: 1. The Franchised Restaurant opened for business on The Initial Term of the Franchise Agreement expires on CJR and Franchisee agree that the terms of this Commencement Date Addendum are incorporated into the Franchise Agreement. If any term of this Commencement Date Addendum conflicts with the terms of the Franchise Agreement, the terms of this Commencement Date Addendum will control. CARL'S JR. RESTAURANTS LLC Print Name: Print Name: CJR - Commencement Date Addendum – 5/25 Franchisee Name (Alpha Code) Unit # Street Address City, State
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Commencement Date Addendum between Carl's Jr. Restaurants LLC and the franchisee includes the opening date of the Carl's Jr. Franchised Restaurant and the expiration date of the initial term of the Franchise Agreement. The terms of the Commencement Date Addendum are incorporated into the Franchise Agreement, and in case of conflict, the Addendum's terms will prevail.
While the excerpt confirms the existence of a Franchise Agreement with an initial term and an expiration date, it does not specify the exact length of the initial term in years. The addendum only indicates that upon opening the restaurant, the franchisee and Carl's Jr. will agree on the commencement date and the expiration date of the initial term.
Prospective franchisees should carefully review the Franchise Agreement and Commencement Date Addendum to understand the specific term length and renewal options. It is essential to clarify these details with Carl's Jr. during the due diligence process to fully understand the duration of the franchise commitment and the conditions for renewal.