What entities besides CKR must a Carls Jr. franchisee obtain written permission from before modifying confidential information?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Confidential Information. Franchisee shall protect the Confidential Information as trade secrets of CKR, PAR Brink and CrunchTime. Franchisee agrees that it shall not, without the written permission of CKR, PAR Brink and CrunchTime: (a) modify any Confidential Information; (b) reverse engineer, decompile, decrypt or disassemble the Confidential Information or attempt to do so; (c) transfer, rent, lease, lend or sublicense any Confidential Information to anyone for any purpose; or (d) reveal or disclose any Confidential Information for any purpose to any other person, firm, corporation or other entity, other than Franchisee's employees with a need to know that Confidential Information, to perform employment responsibilities consistent with Franchisee's rights under this Agreement. Franchisee shall safeguard and protect the Confidential Information from theft, piracy or unauthorized access in a manner at least consistent with the protections Franchisee uses to protect its own most confidential information. Franchisee shall inform its employees of their obligations under this Agreement and shall take those steps as may be reasonable in the circumstances, or as may be reasonably requested by CKR, PAR Brink and CrunchTime, to prevent any unauthorized disclosure, copying or use of the Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must obtain written permission from CKR, PAR Brink, and CrunchTime before modifying any confidential information. This requirement is in place to protect the trade secrets of these entities.
PAR Brink and CrunchTime are identified as third-party software vendors that provide the point-of-sale and back-office systems, respectively, used in the operation of a Carls Jr. restaurant. Because these systems are integral to the Carls Jr. operation, the franchisor requires franchisees to maintain the confidentiality of the related information.
This stipulation means that a Carls Jr. franchisee cannot independently alter any aspect of the confidential operating systems or data without express consent from all three parties. This ensures that the integrity and standardization of the Carls Jr. system are maintained across all franchise locations, and that the proprietary information of CKR and its vendors remains secure.