Does Carls Jr. impose any geographic restrictions on my ability to solicit customers?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only sell or distribute products identified by some or all of the Proprietary Marks from the Franchised Location; you may not use any other method or channel of distribution. We do not impose any geographic restrictions on your ability to solicit customers; however, see Item 13 for Internet restrictions. In addition, you must participate in all online ordering and delivery programs that we may designate from time to time and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. There are no restrictions on our ability to solicit customers, nor must we pay any compensation to you for soliciting or accepting orders. We reserve all rights to use and license the Carl's Jr. System other than those we expressly grant to you. We reserve the right to merchandise and distribute goods and services identified by the Proprietary Marks (or different proprietary marks) through any method or channel of distribution, including the Internet.
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, Carls Jr. does not generally impose geographic restrictions on a franchisee's ability to solicit customers from their franchised location. However, this is subject to Item 13, which likely contains information about Internet restrictions. Franchisees must also participate in any online ordering and delivery programs that Carls Jr. designates, and comply with the terms and conditions of those programs, including any geographic or other delivery restrictions.
Carls Jr. also reserves the right to solicit customers themselves without any obligation to compensate the franchisee. Additionally, Carls Jr. may market and distribute goods and services identified by their trademarks through any method or channel of distribution, including the Internet.
It is important to note that Carls Jr. Restaurants are typically not located in the same geographic area as Hardee's Restaurants, which are under common management. However, in limited cases where there is overlap, Hardee's and its franchisees may solicit or accept orders within the same area served by Carls Jr. franchisees. Any potential conflicts between the franchisees of each system will be resolved on a case-by-case basis. Prospective franchisees should carefully review Item 13 and inquire about the specifics of online ordering and delivery programs to fully understand any potential limitations on customer solicitation.