Does Carls require franchisees to seek approval for local advertising and promotional materials, and if so, under what circumstances?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Local advertising and promotion materials may be purchased from any CJR-approved source. If purchased from a source other than CJR or its affiliates, these materials must comply with federal and local laws and regulations and with the guidelines for advertising and promotions promulgated from time to time by CJR or its designee and must be submitted to CJR or its designee at least 30 days prior to first use for approval, which CJR may grant or withhold in its sole discretion. In no event may your advertising contain any statement or material which, in the sole discretion of CJR, may be considered: (1) in bad taste or offensive to the public or to any group of persons; (2) defamatory of any person or an attack on any competitor; (3) to infringe upon the use, without permission, of any other persons' trade name, trademark, service mark or identification; or (4) inconsistent with the public image of CJR or the System.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to the 2024 Carls FDD, franchisees must submit local advertising and promotional materials for approval if they are purchased from a source other than Carls or its affiliates. These materials must comply with federal and local laws and regulations, as well as the advertising and promotion guidelines set by Carls.
Carls requires that franchisees submit these materials at least 30 days before their first use. Carls retains the sole discretion to either approve or deny the use of these materials.
Carls also specifies certain types of content that are prohibited in franchisee advertising. These include material that Carls deems to be in bad taste, offensive, defamatory, infringing on another's trademarks, or inconsistent with Carls' public image. This allows Carls to maintain control over its brand image and ensure consistent messaging across all franchise locations.