Is there a renewal fee required to renew a Carls Jr. franchise agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| c. | Requirements for you to renew or extend d. Termination by you | Section 2.B. Not Applicable | In order to renew at the end of the Initial Term you must: give timely notice; sign general release; comply with training requirements; be in good standing; not be in default under any agreement with us and our affiliates; not be in default beyond the cure period under any real estate or equipment lease or financing instrument relating to the Franchised Restaurant or any agreement with any vendor or supplier to the Franchised Restaurant; have the right to remain in possession of the Franchised Location for the Renewal Term; remodel in accordance with our then-current standards; and pay a renewal fee. You must also sign our then-current form of Franchise Agreement, the terms of which likely will differ from your original Franchise Agreement, including, without limitation, those relating to royalty fees and advertising obligations. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–66)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a renewal fee is required to extend the franchise term. To renew the franchise agreement at the end of the initial term, a franchisee must meet several requirements, including paying a renewal fee.
In addition to the renewal fee, the franchisee must provide timely notice of their intent to renew, sign a general release, meet training requirements, be in good standing with Carls Jr., and not be in default under any agreements with Carls Jr. or its affiliates. The franchisee must also ensure they have the right to remain in possession of the franchised location for the renewal term and remodel the restaurant to meet Carls Jr.'s then-current standards.
Furthermore, franchisees must sign the then-current form of the Carls Jr. Franchise Agreement, which may have terms that differ from the original agreement. These changes could include, but are not limited to, adjustments to royalty fees and advertising obligations. The initial franchise term for Carls Jr. is 20 years from the date the Franchised Restaurant opens for business, with the option to renew for a Renewal Term of 10 years or, at the franchisee's option, 5 years.