According to the Carls Jr. agreement, what is the definition of 'License'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Pursuant to certain franchise or license agreements ("Franchise Agreement(s)") between Franchisee and CKR's subsidiary, Carl's Jr. Restaurants LLC ("Franchisor"), Franchisee is the operator of the franchised Carl's Jr. restaurants located at the addresses listed in attached Exhibit A ("Franchised Restaurants"). Franchisee may add new Franchised Restaurants to this Agreement, with CKR's consent, by amending Exhibit A.
- B. CKR's third party software vendor, Partech, Inc. ("PAR Brink"), has developed a point of sale system used in connection with the operation of a Carl's Jr. restaurant. CKR's third party software vendor CrunchTime, Inc. ("CrunchTime") has developed a back office system used in connection with the operation of a Carl's Jr. restaurant (collectively the software as be referred to as "Licensed Products").
- C. Franchisee has entered into Software License Agreements with PAR Brink and CrunchTime to use the Licensed Products upon the terms and conditions contained therein.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
Based on the 2025 Carls Jr. Franchise Disclosure Document, the term 'license' appears in the context of software usage and the granting of development rights, but a specific definition of the term 'license' itself is not provided.
The document refers to 'Software License Agreements' with third-party vendors like PAR Brink and CrunchTime, which franchisees enter into to use the 'Licensed Products' (point-of-sale and back-office systems). This implies a legal agreement granting the franchisee the right to use specific software for operating their Carls Jr. restaurant.
Additionally, Carls Jr. reserves the right to 'operate and license others' in specific locations such as travel plazas, airports, and other non-traditional venues. This means Carls Jr. can allow other parties to run Carls Jr. restaurants in these locations, independent of any agreements with the developer. Prospective franchisees should seek clarification from Carls Jr. regarding the precise scope and limitations of these reserved rights and the standard terms and conditions of the Software License Agreements.