Is a Carls Jr. franchisee required to participate in customer satisfaction programs initiated by CJR?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Carl's Jr. Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as CJR may require. CJR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse CJR for all costs related to the Franchised Restaurant associated with any and all of these programs.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are required to participate in customer satisfaction programs. To maintain and improve the goodwill associated with the brand, the franchisee must participate in programs initiated by Carls Jr. to verify customer satisfaction and compliance with operational aspects of the system. These programs include, but are not limited to, secret shoppers, customer surveys, and other Quality Assurance (QA) programs.
Carls Jr. will share the results of these programs with the franchisee, specifically as they pertain to the franchised restaurant. This allows the franchisee to understand areas where they excel and areas needing improvement, based on customer feedback and operational assessments.
Furthermore, the franchisee is responsible for reimbursing Carls Jr. for all costs associated with these programs related to their specific franchised restaurant. This means that in addition to the time and effort required to implement changes based on program results, the franchisee will also bear the financial burden of the evaluation process itself. This is a fairly standard practice in franchising, where franchisees often contribute to quality control and brand consistency initiatives.