What is the minimum number of newly-constructed Carls Jr. Restaurants a franchisee must agree to develop to be eligible for the CJR 2025 Travel Center Development Incentive Program?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
To be eligible for the CJR 2025 Travel Center Development Incentive Program, the following requirements must be satisfied: (i) the Travel Center Location or Gas and Convenience Location must be located within ½ mile of an interstate or limited access highway and must include a combination of high rise pylon sign, billboard or other highway sign (the "Travel Center Program"), (ii) the Travel Center Location or Gas and Convenience Location must be opened pursuant to a Development Agreement dated no later than May 24, 2026, that includes the development of at least three (3) newly-constructed Carl's Jr. Restaurant(s), (iii) franchisee must open the Franchise Restaurants from a Travel Center Location or Gas and Convenience Location by the date(s) outlined in the corresponding Development Agreement, (iv) franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (v) franchisee must be approved for growth by CJR and its affiliates, (vi) franchisee must satisfy CJR's then-current financial and operational requirements for new restaurant development, and (vii) franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the CJR 2025 Travel Center Development Incentive Program.
For Franchisees who develop 3 or more Carl's Jr. restaurants or the conversion of an existing restaurant to a Carl's Jr. restaurant as part of the CJR 2025 Travel Center Development Incentive Program, we will reduce or waive the initial franchisee as set forth in Item 5 and reduce the royalty fee and APO fee as set forth in Item 6.
If you qualify for the CJR 2025 Development Incentive Program, simultaneously with your execution of the qualifying Franchise Agreement, you will sign a CJR 2025 Travel Center Development Incentive Program Addendum to the Franchise Agreement (Exhibit L), which memorializes your right to receive the development incentives described above for the applicable Franchised Restaurant(s). If you sign the CJR 2025 Development Incentive Program Addendum to Franchise Agreement, you will not be entitled, with respect to the applicable Franchised Restaurant(s) covered by the CJR 2025 Travel Center Development Incentive Program, to any other incentives that have been or may be offered by us.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, to be eligible for the CJR 2025 Travel Center Development Incentive Program, a franchisee must commit to developing at least three newly-constructed Carls Jr. restaurants. These restaurants must be located at a Travel Center Location or Gas and Convenience Location. The Development Agreement must be dated no later than May 24, 2026.
This incentive program is designed to encourage the development of Carls Jr. restaurants in areas that cater to travelers, such as near interstates or limited access highways. By requiring a minimum of three restaurants, Carls Jr. aims to ensure a significant presence in these locations.
Franchisees should note that in addition to the minimum development requirement, other conditions must be met to qualify for the incentive program. These include opening the restaurants by the dates outlined in the Development Agreement, not being in default of any existing agreements with Carls Jr., receiving approval for growth from Carls Jr., and meeting the company's financial and operational requirements for new restaurant development. Meeting these requirements ensures that franchisees are in good standing and capable of successfully operating multiple locations.
If a franchisee meets the requirements for the CJR 2025 Travel Center Development Incentive Program, they will sign a CJR 2025 Travel Center Development Incentive Program Addendum to the Franchise Agreement. In return, Carls Jr. will reduce or waive the initial franchisee fee as detailed in Item 5 and reduce the royalty fee and APO fee as detailed in Item 6.