Is a Carls Jr. franchisee required to use the proprietary software program required by CJR?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall: (1) use the proprietary software program, system documentation manuals and other proprietary materials now and hereafter required by CJR in connection with the operation of the Franchised Restaurant; (2) if requested by CJR, execute CJR's standard software license or similar agreement; (3) input and maintain in Franchisee's computer such data and information as CJR prescribes in the OPM, software programs, documentation or otherwise; (4) purchase new or upgraded software programs, system documentation manuals and other proprietary materials at then-current prices whenever adopted system-wide by CJR; (5) comply with Point to Point Credit Encryption Standards ("P2PE") and Payment Card Industry Data Security Standard ("PCI DSS") at all times, and if necessary to maintain such compliance, upgrade its technology, at Franchisee's expense; and (6) engage any vendor that CJR designates to ensure the security of Franchisee's data and compliance with P2PE and PCI DSS. Franchisee must maintain continuous PCI compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to CJR.
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 use the proprietary software program. Specifically, the franchisee must use the proprietary software program, system documentation manuals, and other proprietary materials that Carls Jr. requires for operating the franchised restaurant. Franchisees may also be required to execute Carls Jr.'s standard software license agreement if requested.
Carls Jr. franchisees are responsible for inputting and maintaining data in their computer systems as prescribed by Carls Jr. in the OPM (Operation Procedures Manual), software programs, documentation, or other instructions. They must also purchase new or upgraded software programs, system documentation manuals, and other proprietary materials whenever Carls Jr. adopts them system-wide. This ensures that all locations operate on the same technological platform and adhere to the latest standards set by the company.
To maintain operational efficiency and communication between Carls Jr.'s computers and those of its restaurants, franchisees must keep their computer systems in good repair and make necessary additions, changes, modifications, substitutions, and replacements to their computer hardware, software, telephone and power lines, and other computer-related facilities as directed by Carls Jr. Franchisees are also responsible for maintaining continuous Payment Card Industry (PCI) compliance and must attest to this annually by providing a completed and signed PCI Attestation of Compliance (AOC) to Carls Jr.