Which sections of the Carls Jr. Franchise Agreement are modified by the addition of a sentence as described in this Addendum?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
ts LLC ("CJR") and ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. 1. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of the franchise to Franchisee was made in the State of California; (B) Franchisee is a resident of the State of California; and/or (C) the Restaurant will be located or operated in the State of California. 2. The following sentences are added immediately before the last sentence of Section 16: Franchisee (on behalf of all Releasors) and all guarantors also expressly agree that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived. That Section reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor." 3. the Franchise Agreement. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in 4. and in full force and effect. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified CJR: CARL'S JR. RESTAURANTS LLC Danell Caron Print Name: Vice President, Legal Print Name: Date:
ADDITIONAL DISCLOSURES REQUIRED BY THE STATE OF HAWAII
**THESE FRANCHISES HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the specific sections of the Franchise Agreement modified by adding sentences depend on the franchisee's location. For California franchisees, a sentence is added to Section 16 regarding the waiver of rights under Section 1542 of the California Civil Code. For Minnesota franchisees, sentences are added to Sections 10.B.(5), 11, 22.A.-B., and 27.A.-B. These additions address stipulations related to liability, litigation, and franchisee rights under Minnesota law. No specific modifications are mentioned for franchisees outside of California and Minnesota in the provided excerpts.
These modifications are important because they directly impact the legal rights and obligations of Carls Jr. franchisees in those states. For example, the California addendum ensures the franchisee understands they are waiving specific protections related to unknown claims. The Minnesota addendum ensures that the franchise agreement does not violate Minnesota state laws regarding franchisee rights and litigation venues.
It is typical for franchise agreements to be modified by addenda to comply with state-specific laws. Franchise laws vary considerably from state to state, so franchisors often use addenda to address these differences. Prospective Carls Jr. franchisees should carefully review any addenda applicable to their state to understand how the standard franchise agreement is modified to comply with local laws.
Carls Jr. franchisees should seek legal counsel to fully understand the implications of these modifications. Understanding these state-specific changes is crucial for ensuring compliance and protecting their rights as franchisees.