With what methods, standards, and specifications must a Carls franchisee operate the Franchised Restaurant?

According to Carls's 2024 Franchise Disclosure Document, a franchisee must operate their Carl's Jr. restaurant in strict conformity with the methods, standards, and specifications prescribed in the Operations Procedures Manual (OPM) or otherwise provided in writing by Carls. This includes maintaining sufficient inventories, adequately staffing each shift with qualified employees, and continuously operating the restaurant as specified. The franchisee must also meet and maintain the highest applicable health standards and ratings.

The OPM contains detailed instructions for the restaurant's management and operation, including the selection, purchase, storage, preparation, and sale of all products and beverages. It also covers employee training, marketing, advertising, maintenance, and repair of the restaurant building, equipment, and decor. Franchisees must keep the OPM at the restaurant, treat it as confidential, and only disclose its contents to employees with a need to know.

Carls retains the right to change or modify the system, including the OPM, menu, equipment, signage, and building design. Franchisees are obligated to accept and implement these changes. To ensure compliance, Carls has the right to inspect the restaurant at any reasonable time, observe operations, remove samples for testing, interview personnel and customers, and inspect records. Franchisees must correct any deficiencies immediately and cooperate fully with inspections. Failure to comply with these standards could lead to temporary closure of the restaurant if Carls deems there to be an imminent health hazard.