According to the Carls agreement, who owns the copyright of the Licensed Program?

According to Carls's 2024 Franchise Disclosure Document, the copyright, patent, trademark, trade secret, and all other intellectual property rights in the Licensed Program are owned by Carls (referred to as Licensor), its vendor, or other third parties. The agreement explicitly states that nothing within it should be interpreted as transferring any of these rights to the franchisee (Licensee) or any other third party.

This means that as a franchisee, you are granted a license to use the Licensed Program, but you do not own any of the underlying intellectual property. You cannot alter or remove any intellectual property notices on the Licensed Program. This is a standard practice in franchising, as the franchisor needs to maintain control over its brand and proprietary systems.

The agreement also emphasizes that the franchisee must not alter or delete any intellectual property notices or proprietary markings on the Licensed Program. This provision protects Carls's intellectual property rights and ensures that franchisees do not infringe upon them. Franchisees must adhere to these terms to maintain their license and avoid potential legal issues.

For a prospective Carls franchisee, this underscores the importance of understanding the limitations of the license granted. While you have the right to use the Licensed Program to operate your franchise, you do not have any ownership rights to it. It is essential to comply with all terms and conditions related to intellectual property to avoid any breach of contract.