Does the Carls Jr. franchise agreement permit class action suits or jury trials?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Unless prohibited by applicable law, any legal action or proceeding brought or instituted with respect to any dispute arising from or related to this Agreement or with respect to any breach of the terms of this Agreement must be brought or instituted within a period of 2 years after the initial occurrence of any act or omission that is the basis of the legal action or proceeding, whenever discovered. Applicant, Other Individuals and CJR waive, to the fullest extent permitted by law, the right to trial by jury.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchise agreement includes a waiver of the right to a jury trial. Specifically, the agreement states that the Applicant, Other Individuals, and CJR waive the right to trial by jury to the fullest extent permitted by law.
This means that a franchisee would be giving up their right to have a dispute decided by a jury of their peers. Instead, disputes would be resolved by a judge. This is a significant legal right, and franchisees should carefully consider the implications before agreeing to it.
The FDD does not explicitly address the possibility of class action suits. Because the document is silent on this matter, prospective franchisees should seek clarification from Carls Jr. regarding their policy on class action waivers and whether franchisees are permitted to participate in or initiate class action lawsuits against the company.