Who may fulfill all of the duties and obligations under all existing and future Carls Jr. Franchise Agreements and Development Agreements?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
As noted in Item 1, pursuant to the Management Agreement, CKR, at all times acting on our behalf, may fulfill all of our duties and obligations under all existing and future Franchise Agreements and Development Agreements, including managing the Carl's Jr. System; marketing and offering new and renewal Franchise Agreements and Development Agreements as our franchise broker; training franchisees and their employees; and providing the required support to franchisees. Pursuant to the same Management
Agreement, CKR, also fulfills all of HR's duties and obligations under all existing and future franchise agreements and development agreements for Hardee's Restaurants, which are quick service restaurants identified in whole or in part by the name "Hardee's." Except in limited circumstances, Carl's Jr. Restaurants are not located in the same geographic area as Hardee's Restaurants. In the limited circumstances where there is overlap, HR and its franchisees may solicit or accept orders within the same area served by Restaurants operated by Carl's Jr. franchisees, and any potential conflict between the franchisees of each system will be resolved on a case by case basis. As noted in Item 1, the principal place of business of CKR and HR is the same as ours.
Source: Item 12 — TERRITORY (FDD pages 55–56)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CKR, acting on behalf of Carls Jr., has the authority to fulfill all duties and obligations under existing and future Franchise Agreements and Development Agreements. This includes managing the Carl's Jr. system, marketing and offering new and renewal agreements as a franchise broker, training franchisees and their employees, and providing necessary support.
CKR also fulfills all of HR's duties and obligations under franchise agreements for Hardee's Restaurants. While Carl's Jr. and Hardee's Restaurants are generally not located in the same geographic areas, there may be limited overlap. In such cases, HR and its franchisees can solicit orders in the same area as Carl's Jr. franchisees, with potential conflicts resolved on a case-by-case basis. The principal place of business for both CKR and HR is the same as that of Carls Jr.
This arrangement means that Carls Jr. franchisees will primarily interact with CKR for franchise-related matters, including training and support. It is important for prospective franchisees to understand the relationship between Carls Jr., CKR, and HR, especially regarding potential conflicts or support issues that may arise due to the shared management structure and the presence of Hardee's restaurants in some areas. Franchisees should clarify with Carls Jr. how potential conflicts between the brands are typically handled and what specific support CKR provides to Carls Jr. franchisees.