What are the requirements for a Multi-Unit Manager designated by a Carls Jr. franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
istance of the Franchised Restaurant, unless waived in writing by us. The Operating Principal will be required to successfully complete the FMTP and any additional training required by us. If you operate restaurants in multiple markets that are franchised by us or our affiliates, an individual meeting the above qualifications will serve as the Operating Principal in at least one market.
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.
The Development Principal must own at least a 10% equity ownership interest in you, or in your general partner if you are a limited partnership, unless modified by us in our sole discretion.
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, a franchisee operating restaurants in multiple geographic markets may need to designate a Multi-Unit Manager if the Operating Principal fails to meet Carls Jr.'s requirements. This manager operates under the supervision of the Operating Principal and must dedicate their full time and best efforts to overseeing the operation of the franchised restaurant, along with any other Carls Jr. restaurants the franchisee operates in the same geographic area.
The Multi-Unit Manager must successfully complete the FMTP (Franchise Management Training Program) and any additional training that Carls Jr. requires. Furthermore, unless Carls Jr. provides a written waiver, the Multi-Unit Manager must live within a reasonable driving distance of the franchised restaurant. The purpose of these requirements is to ensure that a qualified and dedicated individual is overseeing operations, especially when the Operating Principal cannot fulfill these responsibilities.
Carls Jr. also stipulates that unless a Multi-Unit Manager has been named and approved, the Operating Principal must devote full time and best efforts to the supervision and conduct of the Franchised Restaurant and those other restaurants (that are franchised by Carls Jr. or its affiliates) operated by the franchisee in the same geographic market as the Franchised Restaurant; and maintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by Carls Jr. This highlights the importance Carls Jr. places on having dedicated and local oversight of its franchise locations, whether through the Operating Principal or a designated Multi-Unit Manager.