What remodel and renovation requirements must be met before a Carls Jr. franchise transfer can be approved?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required: (i) as a condition of renewal, (ii) as a condition of CJR issuing its consent to a proposed transfer as defined further in Section 18 below, or (iii) at CJR's request (but not more often than every 5 years).
Capital expenses necessary for the repair and maintenance of the Franchised Location and modifications required by applicable law or required to abate a hazardous situation are not subject to the time limitations described in the preceding sentence.
Within 60 days after receipt of CJR's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans, along with a project timeline, for the required modernization.
These drawings and plans must be submitted to, and their use approved by, CJR prior to the commencement of work.
Franchisee shall complete the required modernization within the time reasonably specified by CJR in its written notice.
- D. CJR has the right, in its sole discretion, to waive, defer or permit variations from the standards of the System or the applicable agreement to any franchisee or prospective franchisee based on the peculiarities of a particular site, existing building configuration or circumstance, density of population, business potential, trade area population or any other condition or circumstance.
CJR shall have the right, in its sole discretion, to deny any such request CJR believes would not be in the best interests of the System.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements are required to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants as a condition of Carls Jr. issuing its consent to a proposed transfer.
Within 60 days after receipt of Carls Jr.'s written notice regarding the required modernization, the franchisee must prepare and complete drawings and plans, along with a project timeline, for the required modernization. These drawings and plans must be submitted to, and their use approved by, Carls Jr. prior to the commencement of work. The franchisee must complete the required modernization within the time reasonably specified by Carls Jr. in its written notice.
Carls Jr. also has the right to waive, defer or permit variations from the standards of the System or the applicable agreement to any franchisee or prospective franchisee based on the peculiarities of a particular site, existing building configuration or circumstance, density of population, business potential, trade area population or any other condition or circumstance. However, Carls Jr. has the right to deny any such request CJR believes would not be in the best interests of the System.