Under what condition is a Carls Jr. developer required to designate and retain a Multi-Unit Development Manager?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If Developer is developing Franchised Restaurants in multiple geographic markets, for all markets in which the Development Principal fails to satisfy the requirements of Section 8.F., Developer shall designate and retain an individual to serve as Multi-Unit Development Manager. The Multi-Unit
CJR TR Development Agreement – 5/25 Franchisee (Alpha Code) DMA/Area of Development – Number of Restaurants
Development Manager shall be under the supervision of the Development Principal. The Multi-Unit Development Manager shall meet all of the following qualifications:
- (1) The Multi-Unit Development Manager shall devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants to be operated by Developer that are franchised by CJR or its affiliates in a geographic market and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
- (2) Unless waived in writing by CJR, the Multi-Unit Development Manager shall maintain his primary residence within a reasonable driving distance of the Development Territory.
- (3) If requested by CJR, the Multi-Unit Development Manager shall successfully complete CJR's development training. In addition, the Multi-Unit Development Manager shall successfully complete the FMTP and any additional training required by CJR.
- (4) CJR shall have approved the Multi-Unit Development Manager, and not have later withdrawn that approval.
If a Multi-Unit Development Manager no longer qualifies as such, Developer shall designate another qualified person to act as Multi-Unit Development Manager within 30 days after the date the prior Multi-Unit Manager ceases to be qualified. Developer's designee to become Multi-Unit Development Manager must successfully complete the FMTP and any additional development training required by CJR.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a developer is required to designate and retain a Multi-Unit Development Manager under specific circumstances related to their Development Principal's qualifications and the geographic scope of their development. If a Carls Jr. developer is developing franchised restaurants in multiple geographic markets, they must ensure that an individual meeting certain qualifications serves as the Development Principal in at least one market.
However, if the Development Principal does not meet the specified requirements in all markets where the developer is building restaurants, the developer is obligated to designate and retain a Multi-Unit Development Manager for those markets where the Development Principal falls short of the requirements. This Multi-Unit Development Manager operates under the supervision of the Development Principal and must meet specific qualifications, including dedicating full time and best efforts to supervising the development of franchised restaurants within a geographic market, residing within a reasonable driving distance of the Development Territory (unless waived by Carls Jr.), completing Carls Jr.'s development training and the FMTP, and obtaining approval from Carls Jr.
In essence, the Multi-Unit Development Manager acts as a supplementary resource to ensure adequate oversight and expertise in markets where the Development Principal may not fully meet the required qualifications. This structure allows Carls Jr. to maintain consistent standards and support the developer's expansion across multiple locations, while ensuring each market receives appropriate attention and management. If a Multi-Unit Development Manager no longer qualifies, the developer has 30 days to designate another qualified person.