Does Carls Jr. select the site for my franchised restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not select the site for your Franchised Restaurant. You select the site for your Franchised Restaurant subject to our acceptance. As noted in Item 1, you should not acquire any interest in a site for your Franchised Restaurant until you have been approved as a franchisee (or, if you already are a franchisee, until you have been approved for expansion) and we have accepted the site in writing. We generally do not own the Franchised Restaurant premises and lease them to franchisees.
For each proposed site for a Franchised Restaurant, you will, if requested by us, submit a Franchise Site Application to us. In addition, you may have to submit a complete real estate package (containing that information as we may reasonably require) for a proposed site, which you reasonably believe conforms to our then-current site selection criteria, including demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by CJR or our affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises. Within 30 days after receipt of these documents, and any information which CJR may reasonably require, we will advise you in writing whether we have accepted a particular site; however, CJR has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with CJR or its affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. Our acceptance or refusal to accept a site for the Franchised Restaurant may be subject to reasonable conditions as determined in our sole discretion.
We may refuse to accept a site for a proposed Franchised Restaurant unless you demonstrate sufficient financial capabilities, in our sole judgment, applying standards consistent with criteria we use to establish Carl's Jr. Restaurants in other comparable market areas, to properly develop, operate and maintain the Franchised Restaurant. Therefore, you also must furnish us with such financial statements and other information regarding you and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as we reasonably may require.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. does not select the site for your franchised restaurant. Instead, the franchisee is responsible for selecting the site, but it is subject to the franchisor's acceptance. The FDD advises that you should not acquire any interest in a site until you have been approved as a franchisee and Carls Jr. has accepted the site in writing. Carls Jr. generally does not own the premises and lease them to franchisees.
For each proposed site, you may be required to submit a Franchise Site Application and a complete real estate package. This package should include information that conforms to Carls Jr.'s site selection criteria, such as demographic characteristics, traffic patterns, parking, the character of the neighborhood, competition, proximity to other businesses, the nature of other businesses nearby, commercial characteristics (including purchase price, rental obligations, and other lease terms), and the size, appearance, physical characteristics, and a site plan of the premises.
Carls Jr. will advise you in writing whether they have accepted a particular site within 30 days after receipt of all required documents and information. However, Carls Jr. has no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with them or their affiliates. If Carls Jr. does not respond within that time period, the site will be deemed not to have been accepted. The acceptance or refusal to accept a site may be subject to reasonable conditions determined in Carls Jr.'s sole discretion. Carls Jr. may refuse to accept a site unless you demonstrate sufficient financial capabilities to properly develop, operate, and maintain the Franchised Restaurant, applying standards consistent with criteria they use in other comparable market areas. Therefore, you must furnish financial statements and other information regarding you and the development and operation of the proposed Franchised Restaurant, including investment and financing plans.