Under what conditions will Carls Jr. NOT authorize the opening of a franchised restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees, at its sole expense, to do or cause to be done the following, by the Opening Date:
- (1) Obtain and maintain all required building, utility, sign, health, sanitation, business and other permits and licenses applicable to the Franchised Restaurant.
- (2) Construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by CJR.
- (3) Purchase or lease and install all specified and required fixtures, equipment, furnishings and interior and exterior signs required for the Franchised Restaurant.
(4) Purchase an opening inventory for the Franchised Restaurant of only authorized and approved products and other materials and supplies.
D. Acquisition of Necessary Furnishings, Fixtures and Equipment
Franchisee agrees to use in the development and operation of the Franchised Restaurant only those fixtures, furnishings, equipment and signs that CJR has approved for Carl's Jr. Restaurants as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee further agrees to place or display at the Franchised Restaurant (interior and exterior) only those signs, emblems, lettering, logos and display materials that CJR approves in writing from time to time.
Franchisee shall purchase or lease approved brands, types or models of fixtures, furnishings, equipment and signs only from suppliers designated or approved by CJR, which may include CJR. If Franchisee proposes to purchase, lease or otherwise use any fixtures, furnishings, equipment or signs which have not been approved by CJR, Franchisee shall first notify CJR in writing and shall, at its sole expense, submit to CJR upon its request, sufficient specifications, photographs, drawings and/or other information or samples for a determination as to whether those fixtures, furnishings, equipment and/or signs comply with CJR's specifications and standards. CJR will, in its sole discretion, approve or disapprove the items and notify Franchisee within 30 days after CJR receives the request, or such longer period as CJR requires.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must fulfill specific obligations before the opening date of their franchised restaurant. Carls Jr. requires franchisees to obtain and maintain all necessary permits and licenses, including building, utility, sign, health, sanitation, and business permits. Franchisees are also responsible for constructing all required improvements to the location and decorating the exterior and interior in compliance with Carls Jr.'s approved plans. Additionally, franchisees must purchase or lease and install all specified and required fixtures, equipment, furnishings, and interior and exterior signs. Finally, they need to purchase an opening inventory consisting only of authorized and approved products and other materials.
Carls Jr. mandates that franchisees use only approved fixtures, furnishings, equipment, and signs that meet the company's standards for quality, design, appearance, function, and performance. Franchisees must purchase or lease these items from suppliers designated or approved by Carls Jr., which may include Carls Jr. itself. If a franchisee proposes to use any items not already approved, they must notify Carls Jr. in writing and submit specifications, photographs, drawings, or samples for approval. Carls Jr. has the sole discretion to approve or disapprove these items within 30 days of receiving the request, or longer if necessary.
Therefore, Carls Jr. will not authorize the opening of a franchised restaurant if the franchisee fails to meet these pre-opening obligations, such as not securing the required permits and licenses, not adhering to the approved construction and decoration plans, not installing the specified fixtures and equipment, or not using approved suppliers. Compliance with these requirements is essential for maintaining the brand's standards and ensuring a consistent customer experience across all Carls Jr. locations.