Which section of the Carls Jr. Development Agreement addresses transfer of the franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement (FA) and Development Agreement (DA) | Disclosure Document Item | |
|---|---|---|---|
| t. | Transfer | FA: Sections 14 & 15 DA: Sections 9 & 10 | Item 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the sections in the Development Agreement that address the transfer of the franchise are Sections 9 and 10. This information is part of a table outlining the franchisee's obligations under both the Franchise Agreement and the Development Agreement. The table helps prospective franchisees locate detailed information about their obligations within these agreements and other items in the disclosure document.
Specifically, Item 9 of the FDD lists various obligations of the franchisee, such as site selection, pre-opening purchases, compliance with standards, and transfer of the franchise. For each obligation, the table indicates the relevant sections in both the Franchise Agreement (FA) and the Development Agreement (DA) where more details can be found. In the case of franchise transfer, the FA references Sections 14 and 15, while the DA references Sections 9 and 10.
This means that if a Carls Jr. franchisee wants to understand the process, conditions, and requirements for transferring their development rights or franchise to another party, they should refer to Sections 9 and 10 of the Development Agreement. These sections likely outline the procedures for seeking approval from Carls Jr. for the transfer, any transfer fees that may apply, the qualifications required of the proposed transferee, and other relevant terms and conditions. Item 17 of the disclosure document also contains information regarding transfer.