Is prior written consent required from Carls Jr. before relocating the Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive any exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You do not receive the right, under the Franchise Agreement, to develop or operate more than one Franchised Restaurant. Our prior written consent is required before you relocate the Franchised Restaurant. If your right to possession of the Franchise Restaurant premises is lost through no act or failure to act on your part, you may relocate the Franchised Restaurant if: (1) we accept the new location; (2) you construct and equip a Franchised Restaurant at the new location in accordance with the then-current System standards and specifications; (3) a Franchised Restaurant at the new location is open to the public for business within 6 months after the loss of possession of the original franchised location; and (4) you reimburse us for all reasonable expenses actually incurred by us in connection with the acceptance of the new location.
Source: Item 12 — TERRITORY (FDD pages 55–56)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, a franchisee needs prior written consent from Carls Jr. before relocating their franchised restaurant. This requirement is part of the Franchise Agreement, which does not grant franchisees any exclusive territory.
The FDD outlines specific conditions under which a franchisee may relocate without explicit consent if they lose possession of the original premises through no fault of their own. In such cases, Carls Jr. will allow relocation if: (1) they accept the new location; (2) the franchisee constructs and equips a restaurant at the new location according to the current System standards; (3) the new restaurant opens within 6 months of losing the original location; and (4) the franchisee reimburses Carls Jr. for all reasonable expenses incurred in accepting the new location.
This stipulation ensures that Carls Jr. maintains control over its brand's locations and standards. It also protects the brand's image and customer experience by requiring adherence to system standards at any new location. Franchisees should be aware of these conditions and the potential costs associated with relocation, even in situations where they are forced to move.