Who is responsible for alterations and modifications to distinguish the premises from a Carls Jr. Restaurant after the lease or franchise agreement expires?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees that, following the expiration or earlier termination of the Lease or the Franchise Agreement, Tenant shall have the right to make those alterations and modifications (including removal and demolition of improvements installed by Tenant or CJR if necessary) to the Premises or any part thereof as may be necessary to clearly distinguish to the public the Premises from a Carl's Jr.
Restaurant and also to make those specific additional changes as CJR reasonably may require for that purpose.
This includes, but is not limited to, removal of all Proprietary Marks.
Landlord further agrees that, if Tenant fails to promptly make the necessary alterations and modifications, CJR shall have the right to do so without being guilty of trespass or other tort so long as CJR makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the tenant, who is the franchisee, is primarily responsible for making alterations and modifications to the premises to differentiate it from a Carls Jr. Restaurant after the lease or franchise agreement expires or terminates. This includes removing and demolishing any improvements that the franchisee or Carls Jr. installed, if necessary. The goal is to ensure the public can clearly distinguish the location from a Carls Jr. Restaurant, which includes removing all proprietary marks.
Carls Jr. also has the right to request specific additional changes to ensure the location no longer resembles a Carls Jr. restaurant. If the franchisee fails to promptly make these necessary alterations and modifications, Carls Jr. has the right to make the changes themselves.
However, if Carls Jr. undertakes these alterations, they must repair any damage to the building caused by the removal of fixtures or modifications. This provision ensures that while the franchisee is initially responsible, Carls Jr. can step in to protect its brand and image if the franchisee does not fulfill their obligation, with the caveat that Carls Jr. must restore the property to its original condition after making changes.