Under what conditions are extensive structural changes required for a Carls Jr. franchise?

According to the 2025 Carls Jr. Franchise Disclosure Document, extensive structural changes, remodeling, redecoration, and modifications to existing improvements may be required to the restaurant at the time a franchisee provides CJR (Carls Jr. Restaurants) with a renewal notice. This is to ensure the restaurant conforms to the current image of the Carls Jr. system.

This requirement is part of the renewal terms for franchisees who wish to continue operating their Carls Jr. restaurant beyond the initial term. The franchisee is responsible for making the capital expenditures necessary to renovate and modernize the restaurant. These renovations must align with the interior and exterior designs, decor, color schemes, furnishings, equipment, and presentation of proprietary marks that reflect the current Carls Jr. system standards for new restaurants.

Essentially, to renew a franchise agreement, a Carls Jr. franchisee must be prepared to invest in updating the restaurant to meet the brand's current image standards. This ensures consistency across all Carls Jr. locations and helps maintain the brand's appeal to customers. Franchisees should factor in these potential costs when considering whether to renew their franchise agreement, as failing to comply with these requirements could prevent them from renewing their franchise.