What is the renewal fee for a Carls Jr. franchise Renewal Term of 10 years?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
see must take to satisfy Sections 2.B.(2)(b) and (c). If CJR does not intend to permit Franchisee to remain a franchisee for the Renewal Term
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must pay a renewal fee to continue operating their franchise for an additional term after the initial term expires. If a franchisee chooses to renew for a term of 10 years, the renewal fee is $10,000.
To be eligible for renewal, the franchisee must provide written notice to Carls Jr. of their intent to renew within a specific timeframe, no less than 12 months and no more than 24 months before the initial term expires. Franchisees who sublease the Franchised Location from Carls Jr. must provide notice not less than 6 months, nor more than 12 months, before notice of renewal is required to be provided to the landlord under the master lease. The franchisee must also meet certain conditions, including being in good standing with Carls Jr., upgrading the restaurant to current standards, and complying with training requirements.
The renewal franchise agreement may differ from the original agreement, particularly in areas such as royalty fees and advertising obligations. The franchisee must sign and return the renewal agreement along with the renewal fee at least one month before the initial term expires. This ensures that Carls Jr. franchisees remain current with the brand standards and contribute to the ongoing success of the Carls Jr. system.