What must a Carls Jr. franchisee do before implementing a suggestion for a new menu item?

According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee who develops any new concepts, processes, or improvements related to the Carls Jr. system must promptly notify CJR (Carls Jr.) and provide all information regarding the new concept, process, or improvement. This requirement applies whether or not the development occurred pursuant to a CJR-authorized test.

Upon notification, the new concept, process, or improvement becomes the property of CJR and its affiliates. CJR may incorporate it into the system without providing any payment to the franchisee who developed it. The franchisee is also obligated, at their own expense, to take all actions deemed necessary or desirable by CJR to legally vest ownership of such concepts, processes, or improvements in CJR.

This clause means that while franchisees can innovate and potentially improve the Carls Jr. system, they do not retain ownership or receive direct compensation for their ideas if Carls Jr. decides to implement them across the franchise. The franchisee essentially assigns all rights to their innovations to the franchisor. This is a fairly standard practice in franchising, as it allows the franchisor to maintain uniformity and control over the brand and system-wide operations. However, it's crucial for franchisees to understand that their creative contributions may not result in direct financial gain.