Is Carls required to advise the franchisee of any additions or deletions to the Proprietary Marks?

According to Carls's 2024 Franchise Disclosure Document, Carls will advise the franchisee regarding any changes to the Proprietary Marks. The agreement specifies that Carls owns all rights to the Proprietary Marks, and the franchisee's right to use them is subject to the terms of the agreement.

Carls retains the authority to modify the Proprietary Marks, including additions or deletions. Franchisees are bound by these changes, and their right to use the Proprietary Marks is automatically adjusted to reflect these modifications. This ensures that all franchisees use the most current and approved branding elements.

This clause is important for prospective franchisees because it highlights Carls's control over its brand identity. Franchisees must stay informed of any changes to the Proprietary Marks and promptly implement them to maintain brand consistency. Failure to comply with these changes could result in a breach of the franchise agreement.