Does Carls Jr. provide any express or implied warranties of merchantability and fitness for a particular purpose regarding the licensed products?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CKR EXPRESSLY DISCLAIMS, AND FRANCHISEE HEREBY EXPRESSLY WAIVES, ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CKR DOES NOT WARRANT THAT THE LICENSED PRODUCTS WILL MEET FRANCHISEE'S REQUIREMENTS OR THAT THE OPERATION OF THE LICENSED PRODUCTS WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT ERRORS IN THE LICENSED PRODUCTS WILL BE CORRECTED. THE ENTIRE RISK OF THE QUALITY AND PERFORMANCE OF THE LICENSED PRODUCTS IS WITH FRANCHISEE. FRANCHISEE ACKNOWLEDGES AND AGREES THAT FRANCHISEE IS ACCEPTING EACH OF THE LICENSED PRODUCTS UNDER THIS LICENSE IN ITS "AS IS" CONDITION.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. expressly disclaims all warranties, whether express or implied, regarding the licensed products. This disclaimer includes warranties of merchantability and fitness for a particular purpose. Essentially, Carls Jr. does not guarantee that the licensed products will meet the franchisee's specific requirements or operate without interruptions or errors, nor does it guarantee that any errors will be corrected.
This means that the franchisee bears the entire risk regarding the quality and performance of the licensed products and accepts them in an "AS IS" condition. The franchisee acknowledges that the licensed products may be periodically unavailable due to maintenance, upgrades, or other changes.
This type of disclaimer is common in franchising. Prospective Carls Jr. franchisees should carefully consider the implications of accepting the licensed products without any warranties from the franchisor. It is advisable to conduct thorough due diligence and possibly seek legal counsel to fully understand the risks involved.