In the event of a Crisis Situation at a Carls Jr. franchise, what are the franchisee's immediate required actions?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If an event occurs at the Franchised Restaurant that may damage the Proprietary Marks, the System or the reputation of CJR (collectively "Crisis Situation"), Franchisee shall: (1) immediately contact appropriate emergency care providers to assist it in curing the harm or injury; and (2) immediately inform CJR by telephone of the Crisis Situation. Franchisee shall refrain from making any internal or external announcements (i.e., no communication with the news media) regarding the Crisis Situation (unless otherwise directed by CJR or public health officials).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, in the event of a Crisis Situation, which is defined as an event occurring at the Franchised Restaurant that may damage the Proprietary Marks, the System, or the reputation of CJR, the franchisee has specific immediate obligations. The franchisee must first contact appropriate emergency care providers to assist in addressing the harm or injury. Secondly, the franchisee is required to immediately inform CJR by telephone about the Crisis Situation.
Furthermore, the Carls Jr. franchisee is explicitly instructed to refrain from making any internal or external announcements regarding the Crisis Situation. This includes no communication with the news media, unless otherwise directed by CJR or public health officials. This restriction underscores the importance of centralized communication management during a crisis to protect the brand's image and ensure consistent messaging.
This level of control during a crisis is typical in franchising, as franchisors seek to protect their brand reputation and manage public perception. A prospective Carls Jr. franchisee should understand these obligations and be prepared to act swiftly and in accordance with the franchisor's directives during any crisis situation.