Does Carls Jr. limit the customers to whom a franchisee may sell goods or services?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You must offer for sale and sell at the Franchised Restaurant all and only those products and services as are expressly authorized by us in the OPM or otherwise in writing. We may restrict sales of menu items to certain time periods during the day. We have the right to change the menu items, ingredients, products, materials, supplies and paper goods or the standards and specifications of each, and there are no limits on our ability to do so. You must promptly comply with the new requirements. We do not limit the customers to whom you may sell goods or services. You must offer to customers online ordering and delivery services pursuant to online ordering/delivery programs that we may from time to time establish with approved vendors and comply with our specifications regarding same.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. does not limit the customers to whom a franchisee may sell goods or services. However, franchisees may only sell or distribute products identified by the Proprietary Marks from the Franchised Location and may not use any other method or channel of distribution.
Carls Jr. requires franchisees to participate in all online ordering and delivery programs that they may designate and comply with the terms and conditions of such programs, including any geographic or other delivery restrictions. There are no restrictions on Carls Jr.'s ability to solicit customers, nor must they pay any compensation to the franchisee for soliciting or accepting orders.
Carls Jr. reserves all rights to use and license the Carls Jr. System other than those they expressly grant to the franchisee. They 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.