Under what conditions can a Carls Jr. licensee add new Franchised Restaurants to the agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Carl's Jr. Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Carl's Jr. restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee may add new franchised restaurants to their agreement with CKR's (Carl Karcher Enterprises) consent by amending Exhibit A of their Franchise Agreement. Exhibit A lists the addresses of the franchised Carls Jr. restaurants operated by the franchisee.
This implies that adding new locations requires a formal amendment to the existing agreement, ensuring that Carls Jr. maintains control over the expansion and location strategy of its franchises. The consent of CKR is mandatory, suggesting that the franchisor evaluates various factors such as market potential, franchisee performance, and brand consistency before approving additional locations.
For a prospective Carls Jr. franchisee, this means that while there is an opportunity to grow their business by adding more restaurants, such growth is subject to the franchisor's approval. Franchisees should maintain a good relationship with Carls Jr., adhere to the franchise agreement terms, and demonstrate the ability to successfully manage additional locations to increase their chances of obtaining consent for expansion.