What constitutes the 'Carls Jr. System' according to the FDD?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
MAJEURE | 51 | | 29. | ENTIRE AGREEMENT | 51 | | 30. | SEVERABILITY AND CONSTRUCTION | 52 | | 31. | GOVERNING LAW, FORUM AND LIMITATIONS | 53 | | 32. | MISCELLANEOUS | |
GUARANTEE AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
APPENDIX A - FRANCHISE INFORMATION
APPENDIX B - WEEKLY ROYALTY FEE
APPENDIX C - FRANCHISEE'S ADVERTISING AND PROMOTION OBLIGATION
APPENDIX D - OWNERSHIP INTERESTS
APPENDIX E - ACKNOWLEDGEMENT ADDENDUM
APPENDIX F – COMMENCEMENT DATE ADDENDUM
APPENDIX G – LEASE ADDENDUM
APPENDIX H – ACH AUTHORIZATION FORM
APPENDIX I – STAR UNIVERSITY LICENSE AGREEMENT
CARL'S JR. RESTAURANT FRANCHISE AGREEMENT
| Restaurants | LLC | ("CJR"), | a | Delaware | limited | liability | company, | and |
|---|---|---|---|---|---|---|---|---|
| ("Franchisee"). | ||||||||
RECITALS:
- A. As a result of the expenditure of time, skill, effort and money, CJR and its predecessor have developed, and CJR owns, a unique and distinctive system ("System") relating to the development, establishment and operation of quick service restaurants ("Carl's Jr. Restaurants").
- B. The distinguishing characteristics of the System include, without limitation, uniform and distinctive exterior and interior design, layout and trade dress, including specially designed decor and furnishings; an efficient kitchen and equipment layout featuring an automatic charbroiling cooking process; special recipes and menu items; procedures and techniques for food and beverage storage, preparation, service and sanitation; technical assistance and training through course instruction and manuals; and advertising and promotional programs. The System and its components may be changed, improved, and further developed by CJR from time to time.
- C. CJR identifies the System by means of certain trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs and any combination thereof or any other indicia of source (collectively "Proprietary Marks") which CJR has designated or may in the future designate for use with the System. The Proprietary Marks used to identify the System, including the principal Proprietary Marks, may be modified by CJR and/or its affiliates from time to time.
- D. CJR continues to develop, use and control the use of these Proprietary Marks in order to identify for the public the source of services and products marketed under the Proprietary Marks and the System, and to represent the System's high standards of quality, appearance and service.
- E. Franchisee desires to obtain a license to use the System and to develop and continuously operate one Carl's Jr. Restaurant ("Franchised Restaurant") at the location specified in attached Appendix A ("Franchised Location"), subject to the terms and conditions of this Agreement and in strict compliance with the standards and specifications established by CJR.
- F.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the 'Carls Jr. System' is a unique system developed and owned by CJR (Carls Jr. Restaurants) relating to the development, establishment, and operation of quick-service restaurants. This system is distinguished by specific trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs, and other identifiers, collectively known as 'Proprietary Marks,' which Carls Jr. owns and designates for use within the system.
The FDD emphasizes that Carls Jr. continuously develops, uses, and controls these Proprietary Marks to ensure the public recognizes the source of services and products marketed under them. This also serves to maintain the high standards of quality, appearance, and service associated with the Carls Jr. System. The Development Guide, provided to developers, contains mandatory specifications and standards for restaurant construction and other obligations, and it can be updated to reflect changes in the brand's image and standards.
The agreement specifies that developers gain access to valuable trade secrets, specialized training, and confidential information regarding various aspects of the Carls Jr. System, including development, operations, product preparation, sales, market research, advertising, purchasing, and marketing techniques. Franchisees are expected to protect these trade secrets and confidential information, as unauthorized use or disclosure could harm the system. Any new concepts or improvements developed by the franchisee related to the Carls Jr. System become the property of Carls Jr. and can be incorporated into the system without payment to the franchisee.