What is the maximum transfer fee that Carls Jr. charges per Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ity upgrades to modernize and conform the Franchised Restaurant to the image of the System for new franchised restaurants.
- (6) Franchisee, all individuals who executed this Agreement and all guarantors of Franchisee's obligations must execute a general release and a covenant not to sue, in a form satisfactory to CJR, of any and all claims against CJR and its affiliates and their respective past and present officers,
directors, managers, shareholders, members, agents and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, and claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and CJR or its affiliates and Franchisee's operation of the Franchised Restaurant and all other restaurants operated by Franchisee that are franchised by CJR or its affiliates.
- **(7)
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the maximum transfer fee is $2,500 per franchised restaurant. This fee is nonrefundable and is paid to Carls Jr. in connection with their review of the transfer application.
Before a transfer can be finalized, the transferor must pay this fee. Additionally, both the franchisee and the proposed transferee are required to execute an assignment agreement and any necessary amendments to the existing agreement. Carls Jr. may also require a guarantee from individuals as outlined in Section 16.F of the agreement.
Carls Jr. also stipulates that the transferee must complete designated training unless this requirement is waived by Carls Jr. The transferee must also be compliant with all obligations to Carls Jr. under any existing development or franchise agreements. These conditions ensure that the new franchisee is well-prepared and financially stable to maintain the standards of the Carls Jr. brand.