What site selection assistance does Carls Jr. provide to the Developer?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR will provide Developer with the following site selection assistance: (1) CJR's site selection guidelines, and, as Developer may request, a reasonable amount of consultation with respect thereto; and (2) such site evaluation as CJR may deem advisable as part of its evaluation of Developer's request for site acceptance. Developer agrees that CJR will incur no liability to Developer for site selection assistance provided by CJR. Developer is solely responsible for conducting all such due diligence, investigation and validation with its own third party advisors with respect to a proposed site. CJR's consent to a proposed site is simply for purposes of confirming that the site meets CJR's then-current site selection criteria.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. provides the Developer with site selection assistance in the form of site selection guidelines and a reasonable amount of consultation regarding these guidelines upon request. Carls Jr. may also provide site evaluation as part of its evaluation of the Developer's request for site acceptance.
However, the Developer bears the responsibility of all costs, liabilities, and expenses related to locating, obtaining, and developing sites for Franchised Restaurants. The Developer must also construct and equip these restaurants according to Carls Jr.'s standards at accepted sites. The Developer cannot make any binding commitments to purchase or lease a site until Carls Jr. provides written acceptance of the site.
Carls Jr. incurs no liability to the Developer for the site selection assistance it provides. The Developer is solely responsible for conducting all due diligence, investigation, and validation with their own third-party advisors regarding a proposed site. Carls Jr.'s consent to a proposed site confirms that the site meets Carls Jr.'s then-current site selection criteria.