Who is solely responsible for all obligations, debts, and payments under the Carls Jr. lease?

According to the 2025 Carls Jr. Franchise Disclosure Document, the tenant, not CJR, is solely responsible for all obligations, debts, and payments under the lease. CJR bears no liability in that regard. This allocation of responsibility is a standard practice in franchising, where the franchisee (tenant) typically assumes the financial obligations related to the leased property.

This provision protects Carls Jr. from being directly liable for lease-related issues, such as rent payments, property maintenance, or potential breaches of the lease agreement. The landlord agrees to this arrangement, acknowledging that their recourse for any lease-related issues lies solely with the tenant (franchisee).

For a prospective Carls Jr. franchisee, this means they must carefully evaluate the terms of the lease agreement and ensure they have the financial capacity to meet all lease obligations. Failure to do so could result in default, potentially leading to eviction and loss of the franchise. It is crucial for franchisees to conduct thorough due diligence and seek legal and financial advice before signing any lease agreement.