How soon after the Purchase Price has been determined can Carls Jr. exercise its option to purchase the assets?

According to Carls Jr.'s 2025 Franchise Disclosure Document, Carls Jr. has a 10-day window after the Purchase Price has been determined to exercise its option to purchase the assets of a franchised restaurant. To formally exercise this option, Carls Jr. must notify the franchisee in writing within this 10-day period, which is referred to as "CJR's Purchase Notice."

The Purchase Price itself is determined through a valuation process. If Carls Jr. and the franchisee cannot agree on the fair market value of the assets within 30 days of Carls Jr.'s initial notice of intent to purchase, the fair market value will be determined by two professionally certified appraisers, one chosen by each party. If the two appraisals differ by more than 10%, a third appraiser is selected to determine the value, and the average of the appraisals will be the Purchase Price.

Following the Purchase Notice, the closing of the purchase, where the Purchase Price is paid, must occur no later than 60 days after the date of the Purchase Notice. This means that from the time the Purchase Price is finalized, Carls Jr. has 10 days to decide whether to proceed with the purchase and then up to 60 days to complete the transaction.