What right does the Tenant have following the expiration or termination of the Lease or Franchise Agreement regarding alterations and modifications to the Premises, according to the Carls Jr. Lease Addendum?
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, specifically the Lease Addendum, the tenant has rights regarding alterations and modifications to the premises after the lease or franchise agreement ends. The tenant can make alterations and modifications to the property to clearly differentiate it from a Carls Jr. restaurant. This includes removing and demolishing improvements installed by either the tenant or Carls Jr., if necessary.
Carls Jr. may also require specific additional changes for this purpose, including the removal of all proprietary marks. If the tenant does not promptly make these necessary changes, Carls Jr. has the right to make the alterations themselves without being considered a trespasser or committing a tort, provided they repair any damage to the building caused by the removal.
This provision ensures that after the franchise relationship concludes, the property can be repurposed without continuing to appear as a Carls Jr. restaurant. It also protects Carls Jr.'s brand by ensuring the removal of proprietary marks. The franchisee should be aware of their responsibility to alter the premises and the potential for Carls Jr. to step in and complete the alterations if they fail to do so promptly, with the franchisee potentially bearing the costs for such alterations.