What site selection assistance does Carls Jr. provide to franchisees before opening a Franchised Restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Franchised Restaurant, we will:
- 1. Provide you with the following site selection assistance: (A) CJR's site selection guidelines and, as you may request, a reasonable amount of consultation with respect thereto; and (B) such on-site evaluation as we may deem advisable as part of our evaluation of your request for site acceptance. (Development Agreement, § 5.B and Franchise Agreement § 4.B.)
- 2. We will advise you in writing within 45 days after receipt of all documents that we require whether we have accepted a particular site; however, we have no obligation to review any development proposal if you or your affiliates are not in full compliance with all agreements with us or our affiliates. If we do not respond within that time period, we will be deemed not to have accepted the site. (Development Agreement, § 5.D and Franchise Agreement § 4.D.)
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. provides limited site selection assistance to franchisees. Specifically, Carls Jr. offers its site selection guidelines and, upon request, a reasonable amount of consultation regarding these guidelines. Additionally, Carls Jr. may conduct an on-site evaluation as part of their assessment of the franchisee's site acceptance request.
However, the FDD clearly states that the franchisee is responsible for selecting the site for their Franchised Restaurant, subject to Carls Jr.'s final acceptance. The franchisee should not acquire any interest in a site until they have been approved as a franchisee and Carls Jr. has provided written acceptance of the site. The franchisee may be required to submit a Franchise Site Application and a complete real estate package with information that Carls Jr. deems reasonably necessary. This package should align with Carls Jr.'s current site selection criteria, including demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and the site's commercial characteristics.
Carls Jr. will advise the franchisee in writing whether they accept the site within 45 days of receiving all required documents. However, Carls Jr. has no obligation to review the proposal if the franchisee is not in full compliance with all agreements. If Carls Jr. does not respond within the 45-day period, the site is deemed not to have been accepted. The acceptance of a site may be subject to reasonable conditions, as determined by Carls Jr. in its sole discretion.
Carls Jr. may refuse a site if the franchisee cannot demonstrate sufficient financial capabilities to develop, operate, and maintain the Franchised Restaurant, based on standards consistent with those used in comparable market areas. The franchisee must provide financial statements and other information regarding the development and operation of the proposed restaurant, including investment and financing plans. It is important to note that Carls Jr.'s acceptance of a site does not guarantee any specific sales volume or profitability.