From whom can a Carls Jr. franchisee purchase local advertising and promotion materials?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Local advertising and promotion materials may be purchased from any CJR-approved source. If purchased from a source other than CJR or its affiliates or if the materials are created or developed by you, these materials must comply with federal and local laws and regulations and with the guidelines for advertising and promotions promulgated from time to time by CJR or its designee and must be submitted to CJR or its designee at least 30 days prior to first use for approval, which CJR may grant or withhold in its sole discretion. In no event may your advertising contain any statement or material which, in the sole discretion of CJR, may be considered: (1) in bad taste or offensive to the public or to any group of persons; (2) defamatory of any person or an attack on any competitor; (3) to infringe upon the use, without permission, of any other persons' trade name, trademark, service mark or identification; or (4) inconsistent with the public image of CJR or the System. Within 30 days after the end of each fiscal quarter, you must provide us or our designee with copies of all documentation demonstrating the amount and types of local marketing expenditures you made in the prior fiscal quarter.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 42–55)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees can purchase local advertising and promotion materials from any source approved by CJR. This provides franchisees with some flexibility in sourcing their advertising materials, potentially allowing them to find cost-effective or locally relevant options. However, any source other than CJR or its affiliates must be approved by CJR.
Carls Jr. requires that if a franchisee chooses to purchase local advertising and promotion materials from a source other than CJR or its affiliates, or if the franchisee creates or develops the materials themselves, these materials must adhere to all federal and local laws and regulations. Additionally, the materials must comply with the advertising and promotions guidelines that Carls Jr. sets forth from time to time.
To ensure compliance, franchisees must submit these advertising and promotional materials to Carls Jr. or its designee at least 30 days before their first use. Carls Jr. retains the sole discretion to either approve or reject these materials. This approval process allows Carls Jr. to maintain brand consistency and protect its public image. The FDD specifies that Carls Jr. may consider certain factors, such as whether the advertising is in bad taste, defamatory, infringes on trademarks, or is inconsistent with the brand's image, when deciding whether to approve the materials.
Within 30 days after the end of each fiscal quarter, the franchisee must provide Carls Jr. or its designee with documentation showing the amount and types of local marketing expenditures made in the prior fiscal quarter. This reporting requirement allows Carls Jr. to monitor local advertising spending and ensure compliance with the franchise agreement.