Who is the current master distributor for Carls Jr. as of the date of this disclosure document?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Most food items and other goods that you are required to purchase will be purchased from a master distributor. The master distributor will carry items such as meats, cheese, grocery, bread products, paper and cleaning supplies. As of the date of this disclosure document, our master distributor is Distribution Market Advantage ("DMA"). We reserve the right to change the master distributors. Other master distributors may be approved from time to time.
Certain of CJR's products, including our "special sauce," are confidential secret recipes and are considered trade secrets. For those CJR products, in order to control and maintain the quality and consistency of these products, you must use only our secret recipe products and purchase them from us, our affiliate or a source designated by us. For the fiscal year ended January 27, 2025, neither our affiliates nor us received any revenue from the sale of these products to our franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, franchisees are generally required to purchase most food items and other goods from a master distributor. As of the date of the 2025 FDD, the designated master distributor for Carls Jr. is Distribution Market Advantage, also known as DMA. This master distributor is responsible for supplying items such as meats, cheese, grocery products, bread products, paper supplies, and cleaning supplies to Carls Jr. franchisees.
Carls Jr. retains the right to change its master distributors and may approve other master distributors in the future. This means that while DMA is the current supplier, franchisees should be aware that this arrangement could change. It is important for prospective franchisees to stay informed about any changes to the approved supplier list, as these changes could impact costs, supply chain logistics, and overall operations.
Prospective franchisees should also note that certain products, such as Carls Jr.'s "special sauce," are considered trade secrets and must be purchased directly from Carls Jr., its affiliates, or a source designated by them. This ensures quality control and consistency across all franchise locations. While the FDD mentions that neither Carls Jr. nor its affiliates received revenue from the sale of these products to franchisees during the fiscal year ended January 27, 2025, this policy could change, and franchisees should clarify the current purchasing requirements and costs associated with these proprietary items.