Does CJR have the right to condition its consent for a Carls franchisee's use of Proprietary Marks on the franchisee obtaining CJR's written approval of any and all Internet domain names and home page addresses related to the Franchised Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not use the Proprietary Marks in any Internet domain name or e-mail address, in the operation of any Internet web site or on a social mediate platform including any social networking site, Facebook Twitter, Instagram, Pinterest, YouTube, Snapchat, Vince, blogs, podcasts and wikis or other future social media platforms and/or technological avenues (collectively, "Social Media"); not an exclusive list and term applies to any social networking website, mobile application, blog or microblog, public and private message boards, comment sections, etc.) without CJR's prior written consent. CJR may grant or withhold its consent in its sole discretion and may condition its consent on such requirements as CJR deems appropriate, including, among other things, that Franchisee obtain CJR's written approval of: (A) any and all Internet domain names and home page addresses related to the Franchised Restaurant; (B) the proposed form and content of any web site related to the Franchised Restaurant; (C) Franchisee's use of any hyperlinks or other links; (D) Franchisee's use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has an ownership interest; and (E) any proposed modification of Franchisee's web site. CJR may designate the form and content of Franchisee's web site and/or require that any such web site be hosted by CJR or a third party who CJR designates, using one or more web sites that CJR owns and/or controls. CJR may charge Franchisee a fee for developing, reviewing, securing, protecting or approving Franchisee's web site and/or for hosting the web site. CJR has established a Social Media policy for franchisees and Franchisee must comply with the Social Media policy, as modified from time to time, and any additional policies CJR issues. Any copyright in Franchisee's sites or pages on any Social Media are owned by CJR, and Franchisee must sign any documents that CJR reasonably deems necessary to affirm CJR's ownership of the copyright.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carls has the right to condition its consent for a franchisee's use of Proprietary Marks. This condition includes obtaining Carls's written approval of any and all Internet domain names and home page addresses related to the Franchised Restaurant. This extends to various online platforms.
Carls's discretion extends to various aspects of a franchisee's online presence. This includes the form and content of any website related to the Franchised Restaurant, the use of hyperlinks or other links, and the use of any materials in which a third party has an ownership interest. It also includes any proposed modification of the franchisee's website. Carls may also designate the form and content of the franchisee's website and/or require that any such website be hosted by Carls or a third party designated by Carls, potentially using websites that Carls owns and/or controls.
Carls may charge the franchisee a fee for developing, reviewing, securing, protecting, or approving the franchisee's website, and/or for hosting the website. Furthermore, Carls has established a Social Media policy for franchisees, and franchisees must comply with this policy, as modified from time to time, and any additional policies Carls issues. Any copyright in the franchisee's sites or pages on any Social Media are owned by Carls, and the franchisee must sign any documents that Carls reasonably deems necessary to affirm Carls's ownership of the copyright.
This level of control over a franchisee's online presence is common in franchising, as franchisors seek to protect their brand and ensure a consistent brand image across all locations. Prospective Carls franchisees should carefully consider these requirements and the potential costs associated with complying with Carls's online policies.