What is the renewal fee for a 5-year term renewal for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
claims arising out of or related to the Prior Agreement.
- 8. Franchisee's indemnification obligations under the Prior Agreement survive termination of the Prior Agreement and Franchisee's indemnification obligations under the Franchise Agreement will survive termination of the Franchise Agreement.
- 9. Ite
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the renewal fee for a 5-year term is $5,000. The FDD specifies that the renewal term commences and expires at midnight. This fee allows the franchisee to continue operating their Carls Jr. restaurant for an additional 5-year period, subject to the terms and conditions outlined in the franchise agreement and any renewal addenda.
In addition to the renewal fee, the FDD states that there are conditions to be satisfied by the franchisee to be eligible for renewal. These conditions include reimage and deferred maintenance requirements, with specific deadlines for completion. Prospective franchisees should carefully review these requirements to ensure they can meet them within the stipulated timeframes. Failure to meet these conditions could impact the franchisee's ability to renew their agreement.
The renewal fee is paid in consideration of Carls Jr. renewing the Franchise for the Franchised Restaurant for the Renewal Term. The renewal fee is fully earned at the time paid and is not refundable for any reason whatsoever. All references to the "Initial Franchise Fee" shall mean and refer to the Renewal Fee.