What site selection assistance does Carls Jr. provide before I open my 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 FDD, Carls Jr. provides limited site selection assistance. Carls Jr. does not select the site for the Franchised Restaurant; the franchisee does, subject to Carls Jr.'s acceptance.
Carls Jr. will provide site selection guidelines and, upon request, a reasonable amount of consultation regarding these guidelines. Carls Jr. may also conduct an on-site evaluation as part of their evaluation of the site. Franchisees may be required to submit a Franchise Site Application and a complete real estate package with information on demographics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses, and commercial characteristics.
Carls Jr. will advise the franchisee in writing whether they have accepted a particular site within 45 days after receipt of all required documents. However, Carls Jr. has no obligation to review any development 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 will be deemed not to have been accepted. The acceptance or refusal to accept a site may be subject to reasonable conditions determined at Carls Jr.'s discretion.
Carls Jr. may refuse to accept a site unless the franchisee demonstrates sufficient financial capabilities to properly develop, operate, and maintain the Franchised Restaurant, based on standards consistent with criteria used in comparable market areas. The franchisee must furnish financial statements and other information regarding the development and operation of the proposed Franchised Restaurant, including investment and financing plans.