Can the requirement for a Carls Jr. Multi-Unit Manager to maintain a primary residence within a reasonable driving distance of the Franchised Restaurant be waived?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If you operate restaurants that are franchised by us or our affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager will be under the supervision of the Operating Principal. The Multi-Unit Manager must devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market, successfully complete the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Manager must maintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 59–61)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the requirement for a Multi-Unit Manager to maintain a primary residence within a reasonable driving distance of the Franchised Restaurant can be waived. Specifically, Carls Jr. may waive this requirement in writing. This applies both to Multi-Unit Managers and Multi-Unit Development Managers.
For a prospective franchisee, this waiver provides some flexibility in managing their restaurants. If a franchisee operates multiple Carls Jr. locations across a large geographic area, finding a Multi-Unit Manager or Multi-Unit Development Manager willing to relocate or maintain a residence near one of the restaurants might be challenging. The possibility of a waiver allows the franchisee to consider candidates who may live further away but are otherwise well-qualified.
It's important to note that the waiver is not guaranteed and is at the discretion of Carls Jr. Franchisees should not assume that a waiver will be granted and should discuss this possibility with Carls Jr. during the franchise application process if they anticipate needing it. This flexibility could be particularly valuable in areas where qualified managers are scarce or where the franchisee's operational structure requires a more centralized management approach.