During the term of the Carls Jr. franchise agreement, what is the geographical limitation on the restriction regarding owning or operating a competing restaurant?

According to the 2025 Carls Jr. Franchise Disclosure Document, during the term of the franchise agreement, there is no geographical limitation on the restriction regarding owning or operating a competing restaurant. This means that as a franchisee, you are restricted from owning or operating a competing restaurant anywhere in the world during the term of the agreement.

This restriction applies to any restaurant business where the sales of specific entrée items (hamburger, chicken, and breakfast sandwiches, or other items designated by Carls Jr.) are reasonably likely to account for 20% or more of the restaurant's sales during any part of the day, or that features or promotes any of these designated entrée items in its advertising, or that operates in a quick-service format.

After the franchise agreement expires, is transferred, or is terminated, the restriction changes to a 2-mile radius of the franchised location and any then-existing Carls Jr. restaurant. This post-term restriction is more limited geographically than the restriction during the term of the agreement. The restriction does not apply to existing restaurant or foodservice operations that are identified in Appendix A of the agreement, or to other restaurants operated by the franchisee that are franchised by Carls Jr. or its affiliates.