Is a Carls Jr. franchisee required to purchase additional equipment deemed reasonably necessary by CJR in connection with new menu items?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall purchase any additional equipment and smallwares as CJR deems reasonably necessary in connection with new menu items.
If CJR requires Franchisee to begin offering a new menu item which requires the purchase of additional equipment, a reasonable period of time, as determined in the sole discretion of CJR, shall be provided for the financing, purchase and installation of any such equipment before such new menu items must be offered for sale at the Franchised Restaurant.
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 purchase additional equipment and smallwares that Carls Jr. deems reasonably necessary for the introduction of new menu items. This means that if Carls Jr. decides to add a new item to the menu that requires specific equipment the franchisee doesn't already have, the franchisee will have to buy it.
Carls Jr. will provide a reasonable period of time for the franchisee to finance, purchase, and install the necessary equipment before the new menu items must be offered for sale. The determination of what constitutes a 'reasonable period of time' is at the sole discretion of Carls Jr. This could involve applying for loans or reallocating funds, so the time frame is an important consideration for franchisees.
This requirement ensures that all Carls Jr. restaurants can offer the same menu items and maintain brand consistency. However, it also represents a potential cost and logistical challenge for franchisees, who must be prepared to invest in new equipment as the menu evolves. Franchisees should factor in these potential future costs when evaluating the overall investment required to operate a Carls Jr. franchise.