Is a Carls Jr. franchisee required to participate in online ordering/delivery and loyalty programs established by the franchisor?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You must also participate in any online ordering/delivery and loyalty programs that we may establish from time to time with approved vendors and you must comply with the rules and participation criteria applicable to these programs, including our loyalty program. We have currently designated OLO as the sole software platform provider for our online ordering program, Punchh as the sole software platform for our loyalty program, and have partnered with designated service providers for our delivery program. Under our online ordering/delivery programs, we require you to accept and process specific customer delivery orders and we require you to use all approved third-party delivery service providers, currently Uber Eats, Door Dash, and GrubHub if those delivery service providers operate in your restaurant's serviceable area. We must pre-approve all delivery service providers not already designated as approved under our delivery program. In addition, we must pre-approve all sales recording processes that originate from the delivery service providers. We have the right to modify the participation criteria or discontinue these initiates at any time upon written notice to you. See also Item 11.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are required to participate in any online ordering/delivery and loyalty programs that Carls Jr. establishes with approved vendors. This includes adhering to the rules and participation criteria of these programs, such as the loyalty program.
Carls Jr. has designated specific providers for these programs. OLO is the software platform provider for the online ordering program, and Punchh is the software platform for the loyalty program. For delivery services, Carls Jr. has partnered with designated service providers, including Uber Eats, Door Dash, and GrubHub. Franchisees are required to use these approved third-party delivery service providers if they operate within the restaurant's serviceable area. Any other delivery service providers must be pre-approved by Carls Jr.
Franchisees must accept and process specific customer delivery orders through these online ordering/delivery programs. Carls Jr. also retains the right to modify the participation criteria or discontinue these initiatives at any time, provided they give written notice to the franchisee. This ensures that Carls Jr. can adapt its online and loyalty programs as needed, while keeping franchisees informed of any changes.