Can Carls Jr. modify the participation criteria or discontinue the online ordering/delivery and loyalty programs?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You must also participate in any online ordering/delivery and loyalty programs that we may establish from time to time with approved vendors and you must comply with the rules and participation criteria applicable to these programs, including our loyalty program. We have currently designated OLO as the sole software platform provider for our online ordering program, Punchh as the sole software platform for our loyalty program, and have partnered with designated service providers for our delivery program. Under our online ordering/delivery programs, we require you to accept and process specific customer delivery orders and we require you to use all approved third-party delivery service providers, currently Uber Eats, Door Dash, and GrubHub if those delivery service providers operate in your restaurant's serviceable area. We must pre-approve all delivery service providers not already designated as approved under our delivery program. In addition, we must pre-approve all sales recording processes that originate from the delivery service providers. We have the right to modify the participation criteria or discontinue these initiates at any time upon written notice to you. See also Item 11.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must participate in any online ordering/delivery and loyalty programs that Carls Jr. establishes with approved vendors. Franchisees must also comply with the rules and participation criteria applicable to these programs, including the loyalty program. Currently, OLO is the designated software platform provider for the online ordering program, and Punchh is the software platform for the loyalty program. Carls Jr. has partnered with designated service providers for its delivery program.
Carls Jr. requires franchisees to accept and process specific customer delivery orders and use all approved third-party delivery service providers, such as Uber Eats, Door Dash, and GrubHub, if they operate in the restaurant's serviceable area. All delivery service providers not already designated as approved under the delivery program must be pre-approved by Carls Jr. Additionally, all sales recording processes originating from the delivery service providers must be pre-approved.
Importantly, Carls Jr. retains the right to modify the participation criteria or discontinue these initiatives at any time, provided they give written notice to the franchisee. This means that while franchisees are required to participate in these programs, Carls Jr. has the flexibility to change or end them, which could impact a franchisee's operations and revenue streams. Franchisees should stay informed of any changes to these programs to adapt their business strategies accordingly.