Has Carls ever offered franchises in any other line of business besides Mathnasium?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
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The Franchisor and Its Predecessor. CJR is a Delaware limited liability company organized on January 30, 2013. Our principal place of business is 6700 Tower Circle, Suite 1000, Franklin, Tennessee 37067. Our agents for service of process in various states are listed in Exhibit B. We do business under the name "Carl's Jr.". We have operated and offered franchises for Carl's Jr. Restaurants since April 1, 2013. As of January 29, 2024, there were 49 company-operated Carl's Jr. restaurants and there were 1,014 domestic franchised Carl's Jr. restaurants, including 262 Dual Concept restaurants. Dual Concept Restaurants are quick service Carl's Jr. restaurants that also offer Green Burrito Mexican food products. In addition, as of January 29, 2024, there were the following international franchised Carl's Jr. Restaurants: American Samoa – 1; Australia – 47; Cambodia – 6; Canada – 20; Chile – 22; Denmark – 16; Dominican Republic – 1; Ecuador – 24; France – 7; Guatemala – 3; India – 4; Japan – 4; Malaysia – 6; Mexico – 377; New Zealand – 17; Nicaragua – 3; Panama – 10; People's Republic of China – 3; Puerto Rico – 2; Russia – 17; Singapore – 5; Spain – 44; Switzerland – 1; and Turkey – 22. (We consider American Samoa and Puerto Rico to be international locations even though they are U.S. territories.) We do not engage in any other business or offer franchises in any other line of business.
Our predecessor is Carl Karcher Enterprises, Inc., a California corporation incorporated on February 7, 1966, whose principal place of business was 6307 Carpinteria Avenue, Carpinteria, California 93013. On March 26, 2013, it was converted from a corporation to a limited liability company, Carl Karcher Enterprises LLC, a Delaware limited liability company formed on February 25, 2013. Effective October 7, 2013, Carl Karcher Enterprises LLC was converted to a California limited liability company. Carl Karcher Enterprises LLC has the same principal place of business as ours. (Carl Karcher Enterprises, Inc. and Carl Karcher Enterprises LLC will be collectively referred to in this disclosure document as "CKE".) CKE operated Carl's Jr. Restaurants from 1966 until March 31, 2013. CKE also offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. From 1997 to 1998, CKE also offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants. CKE has not engaged in any other business or offered franchises in any other line of business.
The Financing Transaction and the Management Agreement. On April 1, 2013, in connection with a financing transaction, CKE assigned to us all existing franchise agreements ("Franchise Agreements") and development agreements ("Development Agreements") governing franchised Carl's Jr. Restaurants so that we could expand and administer the Carl's Jr. System (through new franchises and other
means) and, pursuant to a Contribution Agreement, CKE contributed to us its ownership of the "Carl's Jr." trade names, service marks and other trademarks that are associated with the Carl's Jr. System and we were assigned ownership of the "Green Burrito" trade names, service marks and other trademarks that are associated with the GB Dual Concept System (collectively, "Proprietary Marks"). In addition, substantially all of the real estate assets associated with the operation of company-owned Carl's Jr.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–19)
What This Means (2024 FDD)
According to the 2024 FDD, Carls Jr., under the name CJR, has not engaged in any other business or offered franchises in any other line of business besides Carl's Jr. Restaurants. As of January 29, 2024, Carls operated and offered franchises for Carl's Jr. Restaurants. There were 49 company-operated Carl's Jr. restaurants and 1,014 domestic franchised Carl's Jr. restaurants, including 262 Dual Concept restaurants, which also offer Green Burrito Mexican food products.
Carl's Jr.'s predecessor, Carl Karcher Enterprises, Inc. (CKE), also did not engage in any other business or offer franchises in any other line of business. CKE operated Carl's Jr. Restaurants from 1966 until March 31, 2013, and offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. From 1997 to 1998, CKE offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants.
Several affiliated franchise programs exist through control with private equity funds managed by Roark Capital Management, LLC. These affiliated programs include GoTo Foods Inc. and ServiceMaster Systems LLC, which oversee various other franchise brands. However, these affiliates do not operate a Carl's Jr. franchise, and the seven GoTo Foods franchisors have not offered franchises in any other line of business.