factual

Under what circumstances must a Carls Jr. franchisee supply CJR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment and other material and reports?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

During the course of construction and/or renovation, Franchisee shall (and shall cause Franchisee's architect, engineer, contractors, and subcontractors to) cooperate fully with CJR and its designees for the purpose of permitting CJR and its designees to inspect the Franchised Location and the course of construction of the Franchised Restaurant in order to determine whether construction is proceeding according to the Plans. Without limiting the generality of the foregoing, Franchisee, and Franchisee's architect, engineer, contractors and subcontractors shall: (1) supply CJR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment and other material and reports, if any such tests, studies or reports indicate there may be material problems or as CJR or its designees may request; and (2) afford CJR's representatives and its designees access to the

Source: Item 22 — CONTRACTS (FDD pages 75–76)

What This Means (2025 FDD)

According to Carls Jr.'s 2025 Franchise Disclosure Document, during the course of construction and/or renovation, a franchisee must cooperate fully with CJR and its designees, including their architect, engineer, contractors, and subcontractors. This cooperation is required to allow CJR and its designees to inspect the franchised location and the construction process to ensure it aligns with the approved plans.

Specifically, the franchisee is obligated to supply CJR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment, and other materials and reports under two conditions. First, if any such tests, studies, or reports indicate there may be material problems. Second, whenever CJR or its designees request these items, regardless of whether material problems are indicated.

This requirement ensures that Carls Jr. maintains control over the construction and renovation process, allowing them to identify and address potential issues early on. It also grants CJR broad authority to request information and materials as needed to ensure compliance with their standards and plans. Franchisees should be prepared to provide these materials promptly and at their own expense, as part of their obligation to cooperate with CJR during construction and renovation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.