According to Carls Jr., what is the purpose of the agreement that applicants must enter into?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS:
- A. Applicant wishes to be considered by CJR for a franchise opportunity to develop and operate one or more Carl's Jr. ("Franchised Restaurants").
- B. Before CJR will consider offering Applicant a franchise opportunity, Applicant must attend a meeting at CJR's offices and at a Carl's Jr. during which Applicant will have the opportunity to meet with, and be evaluated by, various CJR personnel ("Discovery Day"). In addition, CJR may require that Applicant, and/or an employee or employees or other individual or individuals designated by Applicant, and as agreed to and deemed appropriate by CJR ("Other Individuals"), each satisfactorily complete other training programs (collectively "Training Programs"), depending on CJR's determination of the need of those attending the Training Programs.
- C. CJR will provide Applicant and Other Individuals a variety of information both while Applicant and Other Individuals attend Discovery Day and the Training Programs and thereafter, if CJR and Applicant continue to pursue a franchise opportunity.
- D. The information that will be provided by CJR is confidential and CJR is not willing to disclose the information to Applicant or Other Individuals unless they agree to keep the information confidential. Accordingly, the parties are entering into this Agreement to ensure that Applicant and Other Individuals keep all such information confidential.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, the parties agree as follows:
1. Confidential Information. As used in this Agreement, the term "Confidential Information" means any and all information, manuals and materials containing trade secrets; non-public business methods; improvements; data processes; formulae; designs; know-how; maps and trade area analyses; and all confidential technical and non-technical information that is disclosed by or on behalf of CJR or its affiliates to Applicant and/or Other Individuals. "Confidential Information" also includes all other information that Applicant and/or Other Individuals know or have reason to know is the confidential, trade secret, or proprietary information of CJR and/or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the agreement that applicants must enter into is designed to ensure the confidentiality of information provided by Carls Jr. during the franchise evaluation process. Before Carls Jr. will consider offering a franchise opportunity, the applicant must attend a meeting at Carls Jr.'s offices and at a Carls Jr. restaurant, called "Discovery Day," where they will meet with and be evaluated by Carls Jr. personnel. Carls Jr. may also require the applicant, their employees, or other designated individuals to complete training programs.
Carls Jr. will provide the applicant and other individuals with a variety of information during Discovery Day and the Training Programs, and thereafter, if Carls Jr. and the applicant continue to pursue a franchise opportunity. Because this information is confidential, Carls Jr. requires the applicant to agree to keep it confidential.
The agreement defines "Confidential Information" as any information, manuals, and materials containing trade secrets; non-public business methods; improvements; data processes; formulae; designs; know-how; maps and trade area analyses; and all confidential technical and non-technical information disclosed by Carls Jr. or its affiliates. It also includes any other information that the applicant knows or has reason to know is confidential, a trade secret, or proprietary information of Carls Jr. and/or its affiliates. The applicant agrees not to use or disclose this information to ensure its confidentiality.