factual

Is the Carls Jr. license granted to the Licensee exclusive or non-exclusive?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

ARTICLE 1 LICENSE

  • 1.1 License. Licensor grants Licensee a non-exclusive, non-transferable license to use the online Web sites and Web-based applications set forth on Exhibit A to access the Licensed Program and Content offered under the terms of this Agreement solely for Licensee's internal operations at each Franchised Restaurant at which Licensee remains Franchisor's franchisee in good standing ("License"). Licensor has the right to add, modify and/or remove features and elements of the Licensed Program and Content from time to time, without notice to, or the consent of, Licensee. Any data and reports generated by Licensee's use of the Licensed Program and Content are owned solely by Licensor.

Source: Item 23 — RECEIPTS (FDD pages 76–364)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, the license granted to the Licensee is non-exclusive and non-transferable. Specifically, the franchisee is granted a license to use online websites and web-based applications to access licensed programs and content. This access is solely for the franchisee's internal operations at each franchised restaurant where the franchisee remains in good standing with Carls Jr.

Carls Jr. retains the right to modify or remove features and elements of the licensed program and content without notice or consent from the franchisee. All data and reports generated through the franchisee's use of the licensed program and content are owned solely by Carls Jr. This highlights that while franchisees can utilize these digital tools, they do not have any proprietary rights over the technology or the data produced.

This non-exclusive arrangement is typical in franchising, as it allows Carls Jr. to maintain control over its systems and data while providing franchisees with necessary operational tools. Prospective franchisees should understand that their access to and use of these digital resources are subject to Carls Jr.'s discretion and control, and they cannot transfer these rights to another party.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.