Under what condition will the provisions of the addendum to the Development Agreement be effective for a Carls Jr. franchise in Wisconsin?

According to the 2025 Carls Jr. Franchise Disclosure Document, the provisions of the addendum to the Development Agreement for a Carls Jr. franchise in Wisconsin will be effective only if the jurisdictional requirements of the Wisconsin Fair Dealership Law are independently met, regardless of the addendum itself. This means that the protections and modifications outlined in the addendum are not automatically granted simply by its existence.

This condition implies that a Carls Jr. franchisee in Wisconsin must already qualify for the protections of the Wisconsin Fair Dealership Law based on factors such as the nature of their business relationship with Carls Jr., the extent of their investment, and the degree of economic dependence on the franchise. The addendum serves to clarify and supplement these existing legal protections, but it does not create them.

For a prospective Carls Jr. franchisee in Wisconsin, this means understanding the specific requirements of the Wisconsin Fair Dealership Law is crucial. They should consult with legal counsel to determine whether their particular circumstances meet the threshold for coverage under the law, independent of the addendum. This ensures that they can fully benefit from the addendum's provisions and the broader protections afforded by Wisconsin law.