factual

Does the California Department of Financial Protection and Innovation's registration of the Carls Jr. franchise offering constitute approval, recommendation, or endorsement by the commissioner?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

The following information applies to franchises and franchisees subject to the California Franchise Investment Act.

  • A. The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, the registration of the franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner. This means that while Carls Jr. is registered to offer franchises in California, the state's regulatory body is not vouching for the franchise's quality or potential profitability.

This disclosure is a standard legal disclaimer intended to prevent potential franchisees from assuming that state registration implies any form of state endorsement. Prospective franchisees must conduct their own due diligence and not rely on the registration as a sign of a sound investment.

Carls Jr. includes this statement to comply with the California Franchise Investment Law, which requires such a disclaimer to ensure franchisees understand the limits of the state's regulatory oversight. Franchisees should seek professional advice and thoroughly review the FDD and related agreements before making any investment decisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.