For a Carls Jr. multi-unit development, what activities is the Multi-Unit Development Manager prohibited from engaging in?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
y if Developer was a publiclyheld entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between Developer and CJR.
- (2) The Development Principal, at all times, shall be a member of the Continuity Group and, at a minimum, have full control over the day-to-day development of Developer's Franchised Restaurants.
- (3) Unless Developer has named and CJR has approved a Multi-Unit Development Manager:
- (a) The Development Principal shall devote full-time and best efforts to supervising the development of Developer's Franchised Restaurants and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, a Multi-Unit Development Manager for franchisees developing restaurants in multiple geographic markets must meet specific requirements. The Multi-Unit Development Manager must devote their full time and best efforts to supervising the development of Carls Jr. Franchised Restaurants and other restaurants to be operated by the Developer that are franchised by CJR or its affiliates in a geographic market.
Specifically, the Multi-Unit Development Manager is prohibited from engaging in any other business or activity, directly or indirectly, that requires substantial management responsibility. This restriction ensures that the manager is fully dedicated to the development of Carls Jr. restaurants within their designated area.
This requirement is in place for all markets in which the Development Principal fails to satisfy certain requirements. The Development Principal is the primary leader, but if they don't meet specific criteria, the Multi-Unit Development Manager steps in to provide focused oversight. This structure ensures that Carls Jr. maintains a high level of attention and expertise during the development phase of new franchise locations.