After termination or expiration of the Development Agreement for Carls Jr., what is the deadline for the Developer to furnish CJR with evidence of compliance with Sections 14.A. through 14.E.?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Developer shall furnish CJR, within 30 days after the effective date of termination or expiration, evidence (certified to be true, complete, accurate and correct by an authorized officer of Developer) satisfactory to CJR of Developer's compliance with Sections 14.A. through 14.E.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a developer must furnish CJR with evidence of compliance with Sections 14.A. through 14.E. within 30 days after the effective date of the termination or expiration of the Development Agreement. This evidence must be certified as true, complete, accurate, and correct by an authorized officer of the Developer, and it must be satisfactory to CJR.
Sections 14.A. through 14.E. outline the developer's obligations upon termination or expiration, including ceasing development in the territory (with exceptions for already-approved locations), termination of exclusive rights, return of CJR materials, adherence to non-compete covenants, and payment of outstanding sums.
This requirement ensures that the developer formally acknowledges and fulfills all post-termination obligations, providing Carls Jr. with documented assurance of compliance. The 30-day deadline provides a structured timeframe for the developer to gather and submit the necessary evidence, while also allowing Carls Jr. to promptly verify adherence to the terms of the agreement.