Is Carls Jr. permitted to modify the Proprietary Marks used to identify the System?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR identifies the System by means of certain trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs and any combination thereof or any other indicia of source (collectively "Proprietary Marks") which CJR has designated or may in the future designate for use with the System.
The Proprietary Marks used to identify the System, including the principal Proprietary Marks, may be modified by CJR and/or its affiliates from time to time.
Franchisee shall, from time to time, advise Franchisee as to any additions or deletions to the Proprietary Marks and Franchisee's right to use the Proprietary Marks shall be deemed modified by those additions or deletions.
Subject to local ordinances, Franchisee shall prominently display in and upon the land and buildings of the Franchised Restaurant interior and exterior signs and logos using the name "Carl's Jr.", without any prefix or suffix, and those other names, marks, advertising signs and logos, of such nature, form, color, number, location and size, and containing that material as CJR may from time to time direct. Franchisee shall not display in or upon the Franchised Location any sign, logo or advertising media of any kind to which CJR objects.
If CJR, in the exercise of its reasonable business judgment, should elect to use a principal name in addition to or other than "Carl's Jr." to identify System Restaurants generally or in the DMA in which the Franchised Restaurant is located, CJR may select another name and notify Franchisee to change all or some items bearing the Proprietary Marks to the new name within a reasonable period of time as determined by CJR without any liability to Franchisee, and Franchisee promptly shall adopt that name provided that CJR has committed to adopt that name and make the necessary changes in at least 60% of the System Restaurants operated by CJR or CJR Affiliates (if the change affects all System Restaurants) or, in all other circumstances, in at least 60% of the System Restaurants operated by CJR or CJR Affiliates in the DMA in which the Franchised Restaurant is located.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. and its affiliates have the right to modify the Proprietary Marks used to identify the System from time to time. The Proprietary Marks include trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs, and any other indicia of source that Carls Jr. designates as identifying the System.
This means that Carls Jr. can change its logos, branding, and other identifying marks as it sees fit. As a franchisee, you must accept and display these changes in your restaurant. Carls Jr. will advise franchisees of any additions or deletions to the Proprietary Marks, and the franchisee's right to use the Proprietary Marks will be modified accordingly. Franchisees must prominently display interior and exterior signs and logos using the name "Carl's Jr.", and other names, marks, advertising signs and logos as Carls Jr. directs. Franchisees are prohibited from displaying any sign, logo, or advertising media that Carls Jr. objects to.
Carls Jr. also has the right to select another name to identify System Restaurants and notify the franchisee to change all or some items bearing the Proprietary Marks to the new name within a reasonable period of time. This change is contingent upon Carls Jr. committing to adopt that name and making the necessary changes in at least 60% of the System Restaurants operated by Carls Jr. or its affiliates.
These stipulations ensure that Carls Jr. maintains control over its brand identity and can adapt its image as needed. While franchisees are required to implement these changes, they also benefit from the consistent brand recognition and marketing efforts associated with the Carls Jr. system.