Does Carls limit the customers to whom a franchisee may sell goods or services?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
You must offer for sale and sell at the Franchised Restaurant all and only those products and services as are expressly authorized by us in the OPM or otherwise in writing. We may restrict sales of menu items to certain time periods during the day. We have the right to change the menu items, ingredients, products, materials, supplies and paper goods or the standards and specifications of each, and there are no limits on our ability to do so. You must promptly comply with the new requirements. We do not limit the customers to whom you may sell goods or services. You must offer to customers online ordering and delivery services pursuant to online ordering/delivery programs that we may from time to time establish with approved vendors and comply with our specifications regarding same.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carls does not limit the customers to whom a franchisee may sell goods or services. However, franchisees may only sell or distribute products identified by Carls's proprietary marks from the franchised location and may not use any other method or channel of distribution.
Carls requires franchisees to participate in all online ordering and delivery programs that Carls may designate and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. Carls also states that they do not impose any geographic restrictions on a franchisee's ability to solicit customers; however, franchisees should refer to Item 13 in the FDD for Internet restrictions.
Carls also retains the right to merchandise and distribute goods and services identified by the Proprietary Marks (or different proprietary marks) through any method or channel of distribution, including the Internet. This means that while franchisees are not limited in who they can sell to, there are some restrictions on how and where they can sell Carls's products.