What is the obligation of the Carls Jr. tenant regarding repairs after removing trade fixtures?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord consents to Tenant's use of the proprietary signs, distinctive exterior and interior designs, colors and layouts, and the trademarks prescribed by CJR (collectively, "Proprietary Marks"), and upon expiration or the earlier termination of the Lease, consents to permit Tenant, at Tenant's expense, to remove all such items and other trade fixtures, so long as Tenant makes repairs to the Premises caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, upon the expiration or earlier termination of the lease, the tenant is permitted to remove all proprietary marks and other trade fixtures at their own expense. However, the tenant has an obligation to make repairs to the premises caused by such removal. This obligation is part of an agreement between the landlord and the tenant.
This means that as a prospective Carls Jr. franchisee, you will be responsible for any costs associated with repairing the premises after removing items such as proprietary signs, distinctive designs, and trademarks when the lease ends. This could include patching walls, repairing flooring, or any other work needed to restore the property to its original condition, or a condition otherwise agreed upon with the landlord.
It is important for a prospective Carls Jr. franchisee to factor in these potential costs when considering the overall investment and lease terms. Understanding the specific requirements for repairs and negotiating clear terms with the landlord can help avoid unexpected expenses at the end of the lease term. Franchisees should carefully review the lease agreement and any related addenda to fully understand their obligations regarding the condition of the premises upon termination or expiration of the lease.