Does Carls Jr. have a franchisee advertising council that advises on advertising policy?

According to the 2025 Carls Jr. Franchise Disclosure Document, there is no franchisee advertising council that advises Carls Jr. on advertising policy. Franchisees are obligated to contribute to an advertising and promotion obligation (APO), which is paid weekly. A portion of this APO is directed to the Production Fund, while the remainder is paid to a Media Fund. Currently, approximately 1.0% of Gross Sales is allocated to the Production Fund, and 5% of Gross Sales is allocated to the Media Fund; however, Carls Jr. retains the right to reallocate or change the APO split.

Carls Jr. maintains and administers both the Production Fund and the Media Fund. The Production Fund is used for the creation and development of advertising, marketing, public relations, research, gift card and loyalty programs, activities, and materials. The Media Fund covers all working media costs. Carls Jr. has sole discretion over the advertising, marketing, and public relations programs and activities financed by both funds, including creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of advertising and marketing materials. Carls Jr. typically collaborates with an advertising agency for developing advertising for print, radio, Internet, and television, and also utilizes internal and contract creative services.

This means that franchisees do not have direct input on advertising policy through a dedicated council. Instead, Carls Jr. maintains full control over advertising strategies and fund allocation. Prospective franchisees should be aware that while they are required to contribute a percentage of their gross sales to these funds, they will not have a formal mechanism to influence how these funds are used or the direction of advertising campaigns.