What agreement must a Carls Jr. franchisee enter into with Olo, Inc. on or before the Franchised Restaurant opens?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR requires Franchisee to offer delivery services only through CJR's designated providers to customers in Franchisee's market. On or before the Opening Date of the Franchised Restaurant opens, Franchisee agrees to enter into the OLO Authorized Operator Agreement with Olo, Inc. Franchisee further agrees to enter into any participation agreement required with CJR's designated delivery providers at the same time (currently, the approved delivery providers are Uber Eats, Door Dash, and GrubHub). Unless CJR provides its prior written consent, Franchisee agrees that it will not provide its own delivery service or use its employees to deliver orders to Franchisee's customers.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are required to offer delivery services through Carls Jr.'s designated providers. To facilitate this, on or before the opening date of their franchised restaurant, franchisees must enter into an OLO Authorized Operator Agreement with Olo, Inc.
This agreement ensures that Carls Jr. franchisees utilize the approved online ordering and delivery platform, maintaining consistency and quality in delivery services across all locations. Additionally, franchisees must also enter into participation agreements with Carls Jr.'s designated delivery providers, which currently include Uber Eats, Door Dash, and GrubHub, at the same time as the OLO agreement.
Carls Jr. franchisees are restricted from providing their own delivery services or using their employees for deliveries unless they obtain prior written consent from Carls Jr. This requirement allows Carls Jr. to maintain control over the delivery process and customer experience, ensuring that it aligns with the brand's standards and protocols. This also helps in managing the quality and efficiency of delivery services, which are crucial for customer satisfaction and maintaining brand reputation.