Franchisee Commits to Open 121 Carl's Jr Restaurants in Texas
CARPENTERIA, Calif. (Blue MauMau) - RWJP Star Enterprises has entered into a franchise development agreement with CKE Restaurants to open a minimum of 121 Carl’s Jr. restaurants in the Dallas, Houston and Beaumont areas of Texas over the next 10 years. That number of restaurants will help jump start the Carl's Jr. chain in Texas.
Franchise owners enter into area development agreements in which they commit to invest in a certain amount of franchise restaurants within a time period. If the franchise owner fails to open its minimum number of stores it faces the possibility of a breach of contract and termination.
“We are excited to expand the Carl’s Jr. brand in Texas,” said Richard White, partner in RWJP Star Enterprises. His background includes serving as chief information officer at Ross Stores, Inc. White adds, “This was an attractive development opportunity with a company that has a long history of great food, operational quality and a strong balance sheet. We are looking forward to bringing the Carl’s Jr. commitment to premium-quality burgers and service to Texas and building great relationships in these markets.”
With 3,110 restaurants, CKE is on a roll. It has signed 18 development agreements representing 375 new restaurant commitments in the last 11 months. Most of its Carl's Jr. restaurants are in California and most of its Hardy's are in North and South Carolina. Texas has only a few. The Lone Star State is considered a new emerging state for the Carl's Jr and Hardy's brand. The burger franchisor intends to pursue both franchise and company owned store development in Texas.
Andrew Puzder, President and CEO of CKE Restaurants, Inc. declares, “CKE has a long-term commitment to Texas as a new growth market and demonstrated the extent of this commitment by opening new company owned Carl’s Jr. restaurants in the state last year.”
Using RWJP's investments into its commitment of 121 restaurants, Carl's Jr. can gain a critical mass in Texas' crowded hamburger market. "With this agreement to open at least 121 additional franchised units, we believe the Texas market will transition over the next few years from an emerging market for our brand, to a major stronghold," Puzder adds. "We anticipate entering into further franchise development agreements for Texas markets.”
