Who is responsible for the costs associated with developing, constructing, and equipping a Carls Jr. Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to CJR's satisfaction, any development training required by CJR. Franchisee shall pay CJR, for each person attending development training, a tuition fee as established by CJR from time to time. Franchisee also may attend optional development training as offered by CJR from time to time, subject to payment of a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchisee assumes all costs, liability, and expenses for developing, constructing, and equipping the Franchised Restaurant. Carls Jr. will furnish prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront, and color scheme.
It is the franchisee's responsibility to prepare all required construction plans and specifications to suit the shape and dimensions of the Franchised Location. The franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes, permit requirements, and with lease requirements and restrictions. Carls Jr. also requires that the franchisee use only registered architects, registered engineers, and professional and licensed contractors.
The franchisee is also responsible for obtaining and maintaining all required building, utility, sign, health, sanitation, business, and other permits and licenses applicable to the Franchised Restaurant. They must construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by CJR. The franchisee must purchase or lease and install all specified and required fixtures, equipment, furnishings, and interior and exterior signs required for the Franchised Restaurant. Finally, the franchisee must purchase an opening inventory for the Franchised Restaurant of only authorized and approved products and other materials and supplies.