What is the required timeframe for a Carls Jr. franchisee to notify CJR in writing before the expected completion of construction/renovation and issuance of a certificate of occupancy?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall notify CJR in writing at least 30 days prior to the date Franchisee expects construction and/or renovation to be completed and a certificate of occupancy to be issued. If requested by CJR, Franchisee shall submit a copy of the certificate of occupancy to CJR. CJR reserves the right, after receiving Franchisee's notice, to conduct a final inspection of the Franchised Restaurant and its premises to determine if Franchisee has complied with this Agreement. CJR shall not be liable for delays or loss occasioned by its inability to complete its investigation and to make a determination within this period. Franchisee shall not open the Franchised Restaurant for business without CJR's express written authorization, which will not be granted unless Franchisee has satisfied the conditions contained in Section 5.
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 notify CJR in writing at least 30 days before the expected completion date of construction or renovation and the issuance of a certificate of occupancy. This notification allows Carls Jr. to conduct a final inspection of the restaurant to ensure compliance with the franchise agreement.
Carls Jr. reserves the right to conduct a final inspection after receiving the franchisee's notice to determine if the franchisee has complied with the agreement. However, Carls Jr. is not liable for any delays or losses if they cannot complete the investigation and make a determination within this period.
The franchisee cannot open the Carls Jr. restaurant for business without express written authorization from CJR, which will only be granted if the franchisee has met all conditions outlined in Section 5 of the agreement. This includes ensuring that neither the franchisee nor any affiliates are in default under any agreements with CJR, and that the franchisee is not in default beyond any applicable cure period under any real estate lease, equipment lease, or financing instrument related to the restaurant.