factual

How soon after a failed inspection report will Carls Jr. conduct the next inspection?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

CJR shall have the right to periodically conduct inspections of the Franchised Restaurant to evaluate Franchisee's compliance with the System and this Agreement. Following each inspection, CJR will provide Franchisee an inspection report listing Franchisee's score on the inspection and those conditions at the Franchised Restaurant that must be rectified. If Franchisee fails to achieve a passing score on an inspection, the inspection report shall constitute a notice of default. If Franchisee fails to achieve a passing score on the next inspection (which shall be conducted at least 30 days after Franchisee's receipt of the inspection report for the prior inspection), CJR may terminate this Agreement, without opportunity to cure, by providing Franchisee written notice of termination along with the inspection report.

If any valid, applicable law or regulation of a competent governmental authority with jurisdiction over this Agreement requires a notice or cure period prior to termination longer than set forth in this Section, this Agreement will be deemed amended to conform to the minimum notice or cure period required by the applicable law or regulation.

Source: Item 22 — CONTRACTS (FDD pages 75–76)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchisee fails to achieve a passing score on an inspection, the inspection report serves as a notice of default. The next inspection will be conducted at least 30 days after the franchisee receives the inspection report for the prior failed inspection.

If the franchisee fails to achieve a passing score on this subsequent inspection, Carls Jr. has the right to terminate the franchise agreement without providing an opportunity to cure the default. This termination can be enacted by providing the franchisee with a written notice of termination along with the inspection report.

However, the FDD also states that if any applicable law or regulation requires a longer notice or cure period prior to termination, the franchise agreement will be amended to conform to the minimum requirements of that law or regulation. This ensures that Carls Jr. complies with all legal requirements regarding termination procedures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.