Are there any exceptions to the non-compete restrictions for existing restaurant operations of the Carls Jr. Developer?

According to the 2025 Carls Jr. Franchise Disclosure Document, there are exceptions to the non-compete restrictions for existing restaurant operations of the Developer. Specifically, the restriction does not apply to the Developer's existing restaurant or foodservice operations, if any, which are identified in Appendix B. Additionally, the restriction does not apply to other restaurants operated by the Developer that are franchised by Carls Jr. or its affiliates.

This means that if a Carls Jr. developer already owns and operates a restaurant or foodservice business before signing the Development Agreement, that existing business is generally exempt from the non-compete restrictions outlined in the agreement, provided it is listed in Appendix B. Furthermore, any other restaurants the developer operates under a Carls Jr. franchise are also exempt from these restrictions.

This exception provides flexibility for developers who may have pre-existing restaurant businesses or who may operate multiple Carls Jr. franchises. It allows them to continue operating those businesses without being in violation of the non-compete clause. However, it is important for prospective developers to carefully review Appendix B and ensure that all of their existing restaurant operations are properly identified to avoid any potential conflicts or misunderstandings with Carls Jr.