Does Carls have the right to change the standards and specifications of each item?
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 has the right to change the standards and specifications of items sold at the restaurant. Carls has 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 their ability to do so. Franchisees must promptly comply with these new requirements.
This means that a franchisee must be prepared to adapt their business to changes implemented by Carls. These changes can include alterations to the menu, the ingredients used, the products offered, the materials and supplies used, and even the paper goods. The franchisee has no say in these changes and must implement them promptly.
This level of control is typical in franchising, where maintaining brand consistency is a priority. However, it's crucial for franchisees to understand that they may need to invest in new equipment, adjust their inventory, or retrain staff to comply with these changes. While Carls does not limit the customers to whom franchisees may sell goods or services, the franchisee must offer online ordering and delivery services pursuant to online ordering/delivery programs that Carls may from time to time establish with approved vendors and comply with their specifications regarding same.