According to the 2024 Carls Franchise Disclosure Document, the Licensee, under the agreement, is generally restricted from transferring their rights or obligations without prior written consent from the Licensor. Specifically, the document states that the Licensee needs written permission from the Licensor to assign any rights or obligations related to the agreement. However, the Licensor retains the right to transfer, assign, or delegate the agreement, or any part of it, to another person, affiliate, or legal entity.

This stipulation means that a Carls franchisee cannot freely sell or transfer their franchise to someone else without first getting approval from Carls. This gives Carls control over who becomes a franchisee and ensures that any new franchisee meets their standards. It is a fairly standard clause in franchise agreements to protect the brand and maintain consistency across all franchise locations.

However, Carls, as the Licensor, has more flexibility. They can transfer the agreement to another party without needing the franchisee's consent. This could occur if Carls is sold, merged with another company, or undergoes a corporate restructuring. While this clause provides Carls with flexibility, it also introduces an element of uncertainty for the franchisee, as the identity of their franchisor could change during the term of the agreement.