What is the renewal fee for a Carls Jr. franchise Renewal Term of 5 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, CJR's notice shall specify the reasons for non-renewal. If CJR chooses not to permit Franchisee to remain a franchisee for the Renewal Term, it shall have the right to unilaterally extend the Initial Term of this A
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee who chooses to renew their franchise agreement for a Renewal Term of 5 years must pay a renewal fee of $5,000 to Carls Jr. This fee is required to be paid along with the signed renewal franchise agreement at least one month prior to the expiration of the initial term.
To be eligible for renewal, the Carls Jr. franchisee must provide written notice to Carls Jr. of their intent to renew, specifying whether they want a 5-year or 10-year renewal term, no less than 12 months and no more than 24 months before the initial term expires. Franchisees who sublease the Franchised Location from CJR must provide this 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 be in good standing with Carls Jr., compliant with training requirements, and willing to modernize the restaurant to meet current brand standards.
The renewal franchise agreement that Carls Jr. provides will be the form then in general use by Carls Jr. for Carl's Jr. Restaurants and is likely to differ from the original agreement. These differences may include, but are not limited to, provisions relating to the royalty fee and advertising obligations. This means that the franchisee should carefully review the new agreement to understand any changes in their obligations.
It is important to note that Carls Jr. retains the right to determine whether a franchisee is eligible for renewal. If Carls Jr. decides not to renew the agreement, they must provide the franchisee with the reasons for non-renewal. Franchisees should be aware of the conditions required for renewal and maintain their franchise in good standing to increase their chances of being granted a renewal term.