Under what circumstances must a Carls Jr. franchisee designate and retain a Multi-Unit Development Manager?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are developing Franchised Restaurants in multiple geographic markets, for all markets in which the Development Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Development Manager. The Multi-Unit Development Manager will be under the supervision of the Development Principal. The Multi-Unit Development Manager must devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants that are to be operated by you that are franchised by us or our affiliates in a geographic market, successfully complete our development training, the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Development Manager must maintain his/her primary residence within a reasonable driving distance of the Development Territory, unless waived in writing by us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 59–61)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee developing franchised restaurants in multiple geographic markets must designate and retain a Multi-Unit Development Manager if the Development Principal fails to meet Carls Jr.'s requirements in those markets. The Multi-Unit Development Manager operates under the supervision of the Development Principal.
The Multi-Unit Development Manager is required to commit their full time and best efforts to overseeing the development of franchised restaurants, including those operated by the franchisee that are franchised by Carls Jr. or its affiliates within a specific geographic market. This individual must also successfully complete Carls Jr.'s development training, the FMTP (Franchise Management Training Program), and any additional training that Carls Jr. requires. Furthermore, Carls Jr. must approve the designated Multi-Unit Development Manager.
In addition to training and approval, the Multi-Unit Development Manager must maintain their primary residence within a reasonable driving distance of the Development Territory. However, Carls Jr. may waive this residency requirement in writing at its discretion. This ensures that the manager is readily available to oversee development activities within the designated area, unless an exception is granted by Carls Jr.