What are 'Proprietary Marks' for Carls Jr. and can they be modified?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Proprietary Marks" as used in this Agreement refers to all trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs, and any combination thereof or any other indicia of source designated by CJR as identifying the System and the products sold and services provided in connection with the System. You acknowledge that CJR owns all rights, title, and interest in and to the Proprietary Marks and you have only such rights to use the Proprietary Marks as this Agreement grants. CJR 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.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Proprietary Marks encompass all trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs, and any other identifiers that Carls Jr. uses to distinguish its System, products, and services. Carls Jr. owns all rights to these Proprietary Marks, and the franchisee's right to use them is limited to the terms outlined in the franchise agreement. Franchisees can only use the Proprietary Marks in the operation of their franchised restaurant at the specified location.
Carls Jr. retains the right to modify these Proprietary Marks. The document states that Carls Jr. will advise franchisees of any additions or deletions to the Proprietary Marks, which will subsequently modify the franchisee's right to use them. This means that Carls Jr. can change its logos, slogans, or other identifying marks, and franchisees must adapt their restaurants and marketing materials accordingly.
This ability to modify the Proprietary Marks allows Carls Jr. to keep its brand current and competitive. However, it also places an obligation on the franchisee to stay updated with these changes and invest in any necessary updates to signage, menus, and other branded materials. Franchisees must adhere to Carls Jr.'s standards and guidelines for using the Proprietary Marks, as detailed in the operating procedures and manuals. Unauthorized use or attempts to register the Proprietary Marks by the franchisee constitute a breach of the franchise agreement and an infringement of Carls Jr.'s rights.