To whom can Carls Jr. delegate the performance of its obligations and duties under the Franchise Agreement?

According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. has the right to delegate the performance of its obligations and duties under the Franchise Agreement. This delegation can be made to designees, including Carls Jr.'s corporate parents, affiliates, agents, or independent contractors. These independent contractors are entities with whom Carls Jr. has contracted to fulfill these obligations or duties.

This clause provides Carls Jr. with flexibility in managing its responsibilities. It allows Carls Jr. to utilize various resources and expertise, which could include specialized firms for specific tasks or affiliated entities for broader support. For a franchisee, this means that certain aspects of Carls Jr.'s support or obligations might be handled by third parties.

It is fairly common in franchising for franchisors to delegate certain functions to affiliates or contractors. This practice allows the franchisor to scale operations and leverage specialized expertise. However, the franchisee should still expect Carls Jr. to ultimately oversee these delegated tasks and ensure they are performed adequately. Franchisees should confirm that Carls Jr. will maintain responsibility for ensuring these delegated duties are performed.