Under what conditions can CJR (Carls Jr.) reduce the scope of any covenant in Section 20?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR shall have the right, in its sole discretion, to reduce the scope of any covenant in this Section 20 effective immediately upon Franchisee's receipt of written notice, and Franchisee agrees that it shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Section 29.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CJR has the right to reduce the scope of any covenant in Section 20. This reduction can be made at CJR's sole discretion.
To implement this change, Carls Jr. will provide the franchisee with written notice. Upon receiving this notice, the franchisee is obligated to comply with the covenant as it has been modified.
This modification is fully enforceable, regardless of any conflicting provisions in Section 29 of the franchise agreement. This means that Carls Jr. has the power to unilaterally change the restrictions placed on the franchisee as outlined in Section 20, and the franchisee must adhere to these changes immediately upon notification.