What is the 'Property Control Date' in the context of a Carls Jr. development schedule?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
No later than 9 months after CJR's written acceptance of the site, Developer shall deliver to CJR a fully-signed lease or sublease for the Authorized Site (defined below) or proof of Developer's purchase of such site.
The effective date of the lease or sublease, or the closing day of the purchase of the real property, shall be the "Property Control Date".
Developer shall open the Franchised Restaurant no later than the Opening Date set forth in Appendix B.
Strict compliance with the Development Schedule is essential to this Agreement.
Any failure by Developer in fulfilling its obligations to develop and open any Franchised Restaurant when required by the Development Schedule or to obtain site acceptance by the date specified in the Development Schedule shall constitute a material, non-curable breach of this Agreement permitting CJR immediately to terminate this Agreement by giving written notice of termination to Developer. Time is of the essence.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, the Property Control Date is defined as the effective date of the lease or sublease, or the closing day of the purchase of the real property for a franchised restaurant location. This date is a key milestone in the development schedule that franchisees must adhere to.
Specifically, a Carls Jr. developer must deliver to CJR a fully-signed lease or sublease for the Authorized Site or proof of purchase no later than 9 months after CJR's written acceptance of the site. The date the lease goes into effect or the property purchase closes is then designated the 'Property Control Date'.
Carls Jr. emphasizes strict compliance with the development schedule, making the Property Control Date a critical deadline. Failure to meet this deadline, or other obligations in the development schedule, constitutes a material, non-curable breach of the Development Agreement, potentially leading to immediate termination of the agreement by CJR. This underscores the importance of securing the property and finalizing the lease or purchase agreement within the stipulated timeframe to maintain good standing with Carls Jr.