In the event of a Crisis Situation at a Carls franchised restaurant, what two immediate actions are the franchisee required to take?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
If an event occurs at the Franchised Restaurant that may damage the Proprietary Marks, the System or the reputation of CJR (collectively "Crisis Situation"), Franchisee shall: (1) immediately contact
appropriate emergency care providers to assist it in curing the harm or injury; and (2) immediately inform CJR by telephone of the Crisis Situation. Franchisee shall refrain from making any internal or external announcements (i.e., no communication with the news media) regarding the Crisis Situation (unless otherwise directed by CJR or public health officials).
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, if a Crisis Situation occurs at a franchised restaurant that may damage the Proprietary Marks, the System, or the reputation of CJR, the franchisee must take two immediate actions. First, the franchisee must immediately contact appropriate emergency care providers to assist in curing the harm or injury. Second, the franchisee must immediately inform CJR by telephone of the Crisis Situation.
Carls also requires that the franchisee refrain from making any internal or external announcements, including communication with the news media, regarding the Crisis Situation unless otherwise directed by CJR or public health officials. This is likely to ensure that all communications are handled in a way that protects the brand and provides accurate information.
This requirement is fairly standard in franchising, as franchisors want to control messaging and ensure a consistent brand image. A prospective Carls franchisee should understand these obligations and be prepared to act quickly and in accordance with Carls's directives in the event of a crisis.