Is a Carls Jr. franchisee permitted to use their own employees to deliver orders to customers?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR requires Franchisee to offer delivery services only through CJR's designated providers to customers in Franchisee's market. On or before the Opening Date of the Franchised Restaurant opens, Franchisee agrees to enter into the OLO Authorized Operator Agreement with Olo, Inc. Franchisee further agrees to enter into any participation agreement required with CJR's designated delivery providers at the same time (currently, the approved delivery providers are Uber Eats, Door Dash, and GrubHub). Unless CJR provides its prior written consent, Franchisee agrees that it will not provide its own delivery service or use its employees to deliver orders to Franchisee's customers.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are generally not permitted to use their own employees for delivery services. Carls Jr. requires franchisees to offer delivery services exclusively through the company's designated providers.
Specifically, franchisees must enter into an OLO Authorized Operator Agreement with Olo, Inc. and participation agreements with Carls Jr.'s approved delivery providers, which currently include Uber Eats, Door Dash, and GrubHub.
The FDD states that unless Carls Jr. provides prior written consent, franchisees are prohibited from providing their own delivery service or using their employees for deliveries. This restriction ensures consistency and quality control in the delivery process, as well as compliance with Carls Jr.'s standards and procedures. A prospective franchisee should confirm whether there are any circumstances under which they could obtain written consent to use their own delivery service.