Is the Carls Jr. license granted to the Licensee transferable?
Carls_Jr Franchise · 2025 FDDAnswer 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-transferable. Specifically, the license to use the online websites and web-based applications to access the Licensed Program and Content is non-transferable. This license is solely for the Licensee's internal operations at each franchised restaurant where the Licensee remains a franchisee in good standing with Carls Jr.
This non-transferable aspect of the license means that a franchisee cannot sell, assign, or otherwise transfer their rights to use the Licensed Program and Content to another party. This restriction is typical in franchising, as franchisors like Carls Jr. need to maintain control over their brand, systems, and proprietary information. Allowing franchisees to transfer these rights could compromise the uniformity and standards of the Carls Jr. system.
For a prospective Carls Jr. franchisee, this implies that the benefits and responsibilities associated with the Licensed Program and Content are strictly tied to their ownership and operation of the franchised restaurant. If the franchisee sells or otherwise transfers the restaurant, the license to use the Licensed Program and Content does not automatically transfer with it. A new agreement would need to be established with Carls Jr. for the new owner to gain access to these resources.