Does a Carls Jr. franchisee have the ability to set menu prices?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Standards, Specifications and Procedures
Franchisee acknowledges that each and every detail of the appearance, layout, decor, services and operation of the Franchised Restaurant is important to CJR and other Carl's Jr. Restaurants. Franchisee agrees to cooperate with CJR by maintaining these high standards in the operation of the Franchised Restaurant. Franchisee further agrees to comply with all System specifications, recipes, standards and operating procedures (whether contained in the OPM or any other written communication to Franchisee) relating to the interior and exterior appearance, function, cleanliness and operation of a Carl's Jr. Restaurant, including, but not limited to: (1) type, quality, taste, weight, dimensions, ingredients, uniformity, manner of preparation, and sale of all food products and beverages sold at the Franchised Restaurant and all other products used in the packaging and sale of those products and beverages; (2) sales and marketing procedures and customer service; (3) advertising and promotional programs; (4) layout, decor and color scheme of the Franchised Restaurant; (5) appearance and dress of employees; (6) safety, maintenance, appearance, cleanliness, sanitation, standards of service, and operation of the Franchised Restaurant; (7) submission of requests for approval of brands of products, supplies and suppliers; (8) use and illumination of signs, posters, displays, standard formats and similar items; (9) identification of Franchisee as the owner of the Franchised Restaurant; (10) types of fixtures, furnishings, equipment, smallwares and packaging; and (11) the make, type, location and decibel level of any game, entertainment or vending machine. Mandatory specifications, brand standards and operating procedures, including upgraded or additional equipment, that CJR prescribes from time to time in the OPM or otherwise communicates to Franchisee in writing, shall constitute provisions of this Agreement as if fully set forth in this Agreement.
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 the standards, specifications, and procedures set by the franchisor, CJR. This includes compliance with all system specifications and operating procedures relating to the manner of preparation and sale of all food products and beverages sold at the franchised restaurant.
The FDD states that franchisees must comply with system specifications, standards, and operating procedures relating to the type, quality, taste, weight, dimensions, ingredients, uniformity, manner of preparation, and sale of all food products and beverages. This indicates that while franchisees must sell approved products, the franchisor maintains control over various aspects of the menu items.
While the FDD excerpt does not explicitly state that Carls Jr. franchisees cannot set menu prices, the extensive control CJR maintains over product specifications and operating procedures suggests that franchisees have limited flexibility in this area. A prospective franchisee should seek clarification from the franchisor regarding the extent to which they can influence or set menu prices.