What is the purpose of the 2025 CJR development incentive program for Carls Jr.?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. In order to stimulate the development of new franchised Carl's Jr. Restaurants and the continued expansion of the System at eligible travel center and goas and convenience locations, CJR has established the 2025 CJR development incentive program ("Program").
- B. To be eligible for the Program, the following requirements must be satisfied: (i) Franchisee must sign a Development Agreement for the development of a newly-constructed Carl's Jr. Restaurant by no later than May 24, 2026 or Franchisee must sign a Franchise Agreement for the development of a newly constructed Hardee's Restaurant pursuant to the terms of a Development Agreement dated no later than May 24, 2026, (ii) Franchisee must open the newlyconstructed Carl's Jr. Restaurant(s) by the date(s) outlined in the corresponding Development Agreement or Franchise Agreement, (iii) Franchisee may not be in default of its obligations under its existing franchise agreements or related agreements with CJR or its affiliates, (iv) Franchisee must be approved for growth by CJR and its affiliates, (vi) Franchisee must satisfy CJR's thencurrent financial and operational requirements for new restaurant development, and (v) Franchisee and the Carl's Jr. Restaurant(s) otherwise meet the requirements of the Program.
- C. Franchisee and the Franchised Restaurant are eligible to participate in the Program.
- D. Consequently, CJR and Franchisee are entering into this Addendum to modify the Franchise Agreement to reflect the Franchisee's participation in the Program incentives.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the purpose of the 2025 CJR development incentive program is to encourage the opening of new franchised Carls Jr. restaurants. Specifically, the program aims to promote expansion at eligible travel centers, gas stations, and convenience store locations.
To be eligible for the 2025 CJR development incentive program, franchisees must meet several requirements. These include signing a Development Agreement for a newly-constructed Carls Jr. Restaurant by May 24, 2026, or signing a Franchise Agreement for a newly constructed Hardee's Restaurant under a Development Agreement by the same date. Franchisees must also open the new Carls Jr. restaurant by the date specified in their Development Agreement or Franchise Agreement. Furthermore, franchisees must not be in default of any existing agreements with CJR or its affiliates, must be approved for growth by CJR, and must meet CJR's current financial and operational standards for new restaurant development.
Carls Jr. also has a 2025 CJR Travel Center Development Incentive Program. To qualify, the Carls Jr. restaurant must be at a travel center or gas and convenience location within ½ mile of an interstate or limited access highway. It must also feature a high rise pylon sign, billboard, or other highway signage. The location must be opened under a Development Agreement dated no later than May 24, 2026, which includes developing at least three newly-constructed Carls Jr. Restaurants. The franchisee must open the restaurants by the dates outlined in the Development Agreement and meet other standard eligibility criteria.
Additionally, Carls Jr. offers a 2025 CJR Development Incentive Program for Conversion Restaurants. Eligibility for this program requires meeting similar criteria related to location at travel centers or gas and convenience locations, adherence to Development Agreement timelines, and compliance with CJR's operational and financial requirements. Franchisees participating in these programs may have their Franchise Agreement modified to reflect their participation and receive incentives such as reduced royalty fees and advertising pool obligations for a limited time. If a franchisee opens their restaurant six months before the agreed-upon date, Carls Jr. will waive the remaining $15,000 initial franchise fee.