Can Carls Jr. deny approval of a franchisee's local advertising materials?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Local advertising and promotion materials may be purchased from any CJR approved source. If purchased from a source other than CJR or its affiliates, these materials shall comply with federal and local laws and regulations and with the guidelines for advertising and promotions promulgated from time to time by CJR or its designee and shall be submitted to CJR or its designee at least 30 days prior to first use for its approval, which CJR may grant or withhold in its sole discretion. In no event shall Franchisee's advertising contain any statement or material which, in the sole discretion of CJR, may be considered: (1) in bad taste or offensive to the public or to any group of persons; (2) defamatory of any person or an attack on any competitor; (3) to infringe upon the use, without permission, of any other persons' trade name, trademark, service mark or identification; or (4) inconsistent with the public image of CJR or the System. Franchisee may not market or advertise in violation of federal laws regulating advertising, such as the CAN-SPAM Act and TCPA, and applicable state advertising laws.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must adhere to specific guidelines regarding local advertising and promotion. If a franchisee chooses to purchase local advertising and promotion materials from a source other than Carls Jr. or its affiliates, these materials must comply with all federal and local laws and regulations. Additionally, the materials must align with the advertising and promotion guidelines that Carls Jr. establishes.
Before using any local advertising or promotional materials, a franchisee must submit them to Carls Jr. or its designee for approval at least 30 days in advance. Carls Jr. retains the right to either approve or deny this request at its sole discretion. This means that Carls Jr. has significant control over the franchisee's local advertising content and strategy.
Carls Jr. also outlines specific reasons for which it may deny approval of advertising materials. These reasons include if the material is considered to be in bad taste, offensive to the public, defamatory, infringes on another person's trade name, or is inconsistent with the public image of Carls Jr. Therefore, a franchisee must ensure that all advertising materials align with Carls Jr.'s standards and image to avoid potential disapproval.