Can Carls modify the Carl's Jr. System, and if so, what aspects of the system are subject to modification?

According to the 2024 FDD, Carls has the right to change or modify the Carl's Jr. System. This includes a wide range of operational and presentational elements. For a prospective franchisee, this means that the brand standards and requirements can evolve over time.

Specifically, Carls can make modifications to the OPM (presumably the Operations Procedures Manual), the menu and its formats, and the required equipment. This suggests that franchisees must adapt to potential changes in food offerings, preparation methods, and the tools needed to run the business. Carls can also alter the signage, the building and premises of the Franchised Restaurant, including trade dress, décor, and color schemes. This indicates that franchisees may need to invest in updates or remodels to keep the restaurant aligned with the current brand image.

Furthermore, Carls can modify the presentation of the Proprietary Marks, adopt new administrative forms and means of reporting and payment (including electronic methods), and adopt new or modified Proprietary Marks or copyrighted materials. For a franchisee, this could mean changes to branding, reporting processes, and required technology. It is important to note that these changes are at Carls's discretion, and franchisees are obligated to comply with them, as stated in the franchise agreement.