Can the Carls Licensor modify the Licensed Program and Content without the Licensee's consent?

According to Carls's 2024 Franchise Disclosure Document, the licensor has the right to modify the Licensed Program and Content without the franchisee's consent. Specifically, Carls's Licensor retains the right to add, modify, or remove features and elements of the Licensed Program and Content without providing notice to, or obtaining consent from, the franchisee. This means that Carls franchisees must use the Licensed Program and Content as directed by the licensor, and they have no control over changes to it.

This arrangement gives Carls significant control over the technology and content used in the franchised restaurants. While this allows Carls to maintain brand consistency and implement updates quickly, it also means that franchisees may have to adapt to changes they did not request and may not agree with. Franchisees are obligated to use the Licensed Program and Content strictly in compliance with the standards and instructions issued by Carls.

Furthermore, any data and reports generated through the franchisee's use of the Licensed Program and Content are owned solely by Carls's Licensor. This reinforces the licensor's control over the system and its output, limiting the franchisee's ownership and control over business-related data. Prospective franchisees should consider the implications of these terms, particularly the lack of control over the Licensed Program and Content and the ownership of generated data, before investing in a Carls franchise.