What proprietary items does the Landlord consent to the Carls Jr. tenant using?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Landlord consents to Tenant's use of the proprietary signs, distinctive exterior and interior designs, colors and layouts, and the trademarks prescribed by CJR (collectively, "Proprietary Marks"), and upon expiration or the earlier termination of the Lease, consents to permit Tenant, at Tenant's expense, to remove all such items and other trade fixtures, so long as Tenant makes repairs to the Premises caused by such removal.
Landlord agrees that, following the expiration or earlier termination of the Lease or the Franchise Agreement, Tenant shall have the right to make those alterations and modifications (including removal and demolition of improvements installed by Tenant or CJR if necessary) to the Premises or any part thereof as may be necessary to clearly distinguish to the public the Premises from a Carl's Jr.
Restaurant and also to make those specific additional changes as CJR reasonably may require for that purpose.
This includes, but is not limited to, removal of all Proprietary Marks.
Landlord further agrees that, if Tenant fails to promptly make the necessary alterations and modifications, CJR shall have the right to do so without being guilty of trespass or other tort so long as CJR makes repairs to the building caused by such removal.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the landlord consents to the tenant's use of specific proprietary items related to the Carls Jr. brand. These include the proprietary signs, distinctive exterior and interior designs, colors and layouts, and the trademarks prescribed by CJR (Carls Jr. Restaurants LLC). These elements are collectively referred to as "Proprietary Marks" in the lease agreement.
This consent ensures that the Carls Jr. franchisee can fully implement the brand's established image and standards at their location. It also stipulates that upon the lease's expiration or termination, the tenant is allowed to remove these proprietary items and trade fixtures at their own expense, provided they repair any damage caused by the removal. This clause protects the integrity of the Carls Jr. brand by ensuring that a former franchise location does not continue to display Carls Jr.'s branding after the franchise agreement ends.
Furthermore, the agreement emphasizes that if the tenant fails to make necessary alterations to remove Carls Jr.'s branding after the termination of the lease or franchise agreement, CJR has the right to do so. This action can include the removal of all Proprietary Marks to clearly distinguish the premises from a Carls Jr. Restaurant. This provision ensures that the location does not mislead the public into thinking it is still a Carls Jr. restaurant and protects the brand's image and reputation.
Overall, these measures are typical in franchise agreements to maintain brand consistency and prevent unauthorized use of trademarks and designs. For a prospective Carls Jr. franchisee, this means they can operate knowing the landlord has agreed to these branding elements, but they also bear the responsibility for removing them and restoring the premises if they leave the Carls Jr. system.