Is there an exception to the transfer fee for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer | $2,500 per restaurant transferred | Prior to consummation of transfer | There is no fee if you transfer to a corporation or limited liability company which you control. Unless otherwise expressly permitted by the applicable agreement, transfers are subject to CJR's prior written consent. |
Source: Item 6 — Other Fees (FDD pages 28–35)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, the standard transfer fee is $2,500 per restaurant. However, there is an exception to this fee.
The document specifies that the transfer fee is waived if the transfer is made to a corporation or limited liability company that the franchisee controls. This means that if a franchisee incorporates their Carls Jr. business or forms an LLC and then transfers the franchise to that entity, they will not have to pay the $2,500 transfer fee per restaurant.
It is important to note that all transfers, unless expressly permitted by the applicable agreement, are subject to Carls Jr.'s prior written consent. This indicates that even if the transfer qualifies for the fee waiver, Carls Jr. still needs to approve the transfer itself.