Does CJR have discretion over the consultation and advice provided to a Carls franchisee regarding construction, renovation, and operation of the Franchised Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
CJR periodically, as it deems appropriate, shall advise and consult with Franchisee in connection with the operation of the Franchised Restaurant. CJR, as it deems appropriate, shall provide to Franchisee its knowledge and expertise regarding the System and pertinent new developments, techniques and improvements in the areas of restaurant design, management, food and beverage preparation, sales promotion, service concepts and other areas. CJR may provide these services through visits by CJR's representatives to the Franchised Restaurant or Franchisee's offices, the distribution of printed or filmed material or electronic information, meetings or seminars, telephone communications, email communications or other communications.
Franchisee agrees, at its sole expense, to do or cause to be done the following, by the Opening Date:
- (2) Construct all required improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by CJR.
Franchisee agrees to use in the development and operation of the Franchised Restaurant only those fixtures, furnishings, equipment and signs that CJR has approved for Carl's Jr. Restaurants as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee further agrees to place or display at the Franchised Restaurant (interior and exterior) only those signs, emblems, lettering, logos and display materials that CJR approves in writing from time to time.
CJR will, in its sole discretion, approve or disapprove the items and notify Franchisee within 30 days after CJR receives the request, or such longer period as CJR requires.
To ensure full operational efficiency and communication capability between CJR's computers and those of all Carl's Jr. Restaurants, Franchisee agrees, at its expense, to keep its computer system in good maintenance and repair and to make additions, changes, modifications, substitutions and replacements to its computer hardware, software, telephone and power lines and other computer-related facilities as directed by CJR, and on the dates and within the times specified by CJR in its sole discretion.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, CJR has significant discretion over various aspects of consultation and advice provided to franchisees regarding the construction, renovation, and operation of their franchised restaurants. CJR periodically advises and consults with franchisees concerning the operation of the Franchised Restaurant, as CJR deems appropriate. This includes providing knowledge and expertise regarding the System and new developments in areas such as restaurant design, management, food and beverage preparation, sales promotion, and service concepts. These services can be delivered through various means, including visits, printed or filmed material, electronic information, meetings, seminars, and communications.
Carls requires franchisees to construct improvements to the Franchised Location and decorate the exterior and interior of the Franchised Restaurant in compliance with the Plans approved by CJR. Franchisees must also use only those fixtures, furnishings, equipment, and signs that CJR has approved. If a franchisee proposes to use unapproved items, they must submit specifications for CJR's approval, which CJR may approve or disapprove at its sole discretion.
Furthermore, Carls retains the right to mandate modifications and replacements to a franchisee's computer hardware, software, telephone and power lines, and other computer-related facilities. These changes are to be implemented as directed by CJR, within the timelines specified by CJR in its sole discretion, ensuring operational efficiency and communication capability between CJR's computers and those of all Carls Jr. Restaurants. This level of control ensures uniformity and compliance with Carls's standards across all franchised locations.