Under what condition is CJR not obligated to review any development proposal for a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 45 days after receipt of all documents referenced in this Section and any additional information that CJR may require, CJR shall advise Developer in writing whether it has accepted a particular site; however, CJR has no obligation to review any development proposal if Developer or its affiliates are not in full compliance with all agreements with CJR or its affiliates and not approved for growth by CJR. If CJR does not respond within that time period, CJR shall be deemed not to have accepted the site. CJR's acceptance or refusal to accept a site may be subject to reasonable conditions as determined in its sole discretion. (A site which CJR has accepted shall be referred to as an "Authorized Site.")
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CJR (Carls Jr. Restaurants LLC) has no obligation to review any development proposal if the developer or its affiliates are not in full compliance with all agreements with CJR or its affiliates. This also applies if the developer has not been approved for growth by CJR.
This means that a prospective Carls Jr. franchisee must maintain good standing with the franchisor and adhere to all existing agreements to ensure that their development proposals are considered. Failure to comply with agreements or secure approval for growth can result in CJR declining to review the franchisee's proposed site.
This condition underscores the importance of maintaining a positive and compliant relationship with Carls Jr. A franchisee should ensure they understand and adhere to all contractual obligations and growth requirements to avoid delays or rejection of their development plans. This requirement is in place to protect the Carls Jr. brand and ensure consistent quality and compliance across all franchise locations.