Does the Carls Jr. franchise agreement allow a franchisee to operate the franchised restaurant at any location other than the approved Franchised Location?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Franchisee shall use the Franchised Location solely for the operation of the Franchised Restaurant and shall maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the Franchised Restaurant at its maximum capacity and efficiency for the minimum number of days and hours set forth in the OPM or as CJR otherwise prescribes in writing (subject to the requirements of local laws and licensing requirements).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchisee is required to operate the restaurant solely at the approved Franchised Location. The agreement specifies that during the term of the agreement, the franchisee must use the Franchised Location only for the operation of the Franchised Restaurant.
Carls Jr. also requires franchisees to maintain sufficient inventory and adequately staff each shift with qualified employees. The franchisee must continuously operate the restaurant at its maximum capacity and efficiency for the minimum number of days and hours as set forth in the OPM (Operating Procedures Manual) or as otherwise prescribed in writing by Carls Jr., subject to local laws and licensing requirements.
This clause ensures that the franchisee focuses their efforts on maximizing the potential of the approved location and upholds the brand standards of Carls Jr. By restricting the operation to a single, approved location, Carls Jr. aims to maintain consistency and quality across all its franchised restaurants. This also allows Carls Jr. to manage and control the brand's presence and market penetration more effectively.