Does the pending action involving Diane Simrall have any impact on the Carls Jr. brand?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
The following pending action names one of our Item 2 individuals personally but relates to this individual's prior employment with a different franchisor and brand. This action does not have any impact on us or our brand nor does it allege any unlawful conduct by us.
(4) EYM Pizza of Georgia, LLC et al. v. Pizza Hut, LLC (United States District Court for the Northern District of Texas as Civil Action No. 3:24-cv-16770).
Source: Item 3 — LITIGATION (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the pending action involving Diane Simrall does not have any impact on the Carls Jr. brand. The FDD states that the action names one of their Item 2 individuals personally but relates to this individual's prior employment with a different franchisor and brand. The Item 2 individual is Diane Simrall, who currently serves as Carls Jr.'s Vice President, Finance.
The lawsuit, EYM Pizza of Georgia, LLC et al. v. Pizza Hut, LLC, was filed against Pizza Hut, LLC, and also individually named Diane Simrall, who was PHLLC's former Director of Franchise Finance & Non-Traditional Development. The claims alleged are tortious interference and conspiracy, with EYM alleging that PHLLC personnel improperly spoke to potential buyers and disclosed confidential information, and contacted EYM's lender causing business interruption and disclosure of trade secrets.
Because the lawsuit against Diane Simrall relates to her prior employment with Pizza Hut and does not allege any unlawful conduct by Carls Jr., it is not expected to impact the Carls Jr. brand or its franchisees. This disclosure provides reassurance to potential franchisees that the litigation is separate from Carls Jr.'s operations.