Until what date did Carl Karcher Enterprises (CKE) operate Carls Jr. Restaurants?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Our predecessor is Carl Karcher Enterprises, Inc., a California corporation incorporated on February 7, 1966, whose principal place of business was 6307 Carpinteria Avenue, Carpinteria, California 93013. On March 26, 2013, it was converted from a corporation to a limited liability company, Carl Karcher Enterprises LLC, a Delaware limited liability company formed on February 25, 2013. Effective October 7, 2013, Carl Karcher Enterprises LLC was converted to a California limited liability company. Carl Karcher Enterprises LLC has the same principal place of business as ours. (Carl Karcher Enterprises, Inc. and Carl Karcher Enterprises LLC will be collectively referred to in this disclosure document as "CKE".) CKE operated Carl's Jr. Restaurants from 1966 until March 31, 2013. CKE also offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. From 1997 to 1998, CKE also offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants. CKE has not engaged in any other business or offered franchises in any other line of business.
The Financing Transaction and the Management Agreement. On April 1, 2013, in connection with a financing transaction, CKE assigned to us all existing franchise agreements ("Franchise Agreements") and development agreements ("Development Agreements") governing franchised Carl's Jr. Restaurants so that we could expand and administer the Carl's Jr. System (through new franchises and other
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–19)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carl Karcher Enterprises (CKE) operated Carl's Jr. Restaurants until March 31, 2013. CKE, which includes Carl Karcher Enterprises, Inc. and Carl Karcher Enterprises LLC, began operating Carl's Jr. Restaurants in 1966. CKE also offered franchises for Carl's Jr. Restaurants from 1984 until the same date, March 31, 2013.
On April 1, 2013, CKE assigned all existing franchise and development agreements to Carl's Jr. Restaurants LLC in connection with a financing transaction. This assignment allowed Carl's Jr. Restaurants LLC to expand and manage the Carl's Jr. system through new franchises. CKE also contributed the ownership of the Carl's Jr. trademarks to Carl's Jr. Restaurants LLC and assigned ownership of the Green Burrito trademarks.
In addition to the franchise agreements, substantially all real estate assets associated with company-owned Carl's Jr. Restaurants, previously owned or leased by CKE (or its affiliates), along with real estate leases and subleases between CKE (or its affiliates) and franchisees, were assigned to Carl's Jr. Restaurants LLC. Carl's Jr. Restaurants LLC also assumed the operation of substantially all company-owned Carl's Jr. restaurants.