factual

Does the provided text describe Carls Jr. as a franchisor of any restaurants?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

To simplify the language in this disclosure document, "we," "us" and "CJR" refer to Carl's Jr. Restaurants LLC, the franchisor. "You" refers to the person or legal entity who buys the franchise. If you are a corporation, partnership, limited liability company or other business entity, certain provisions of this disclosure document also apply to your owners and will be noted.

CJR is offering, in connection with this disclosure document, the opportunity to become a franchisee and operate a Carl's Jr. Restaurant at either a Travel Center Location or a Gas and Convenience Location (as defined below). The franchise described in this disclosure document is for all franchisees who desire to operate a Carl's Jr. Restaurant at a Travel Center Location or a Gas and Convenience Location.

In addition to offering franchises for the operation of Carl's Jr. Restaurants from Travel Center Locations and Gas and Convenience Locations, CJR offers franchises to operate Carl's Jr. Restaurants at traditional locations and nontraditional locations under one or more separate disclosure documents. That offer will be on terms and conditions different from those described in this disclosure document. Nontraditional locations include, but are not limited to, airports, train stations, bus stations, stadiums, arenas, convention centers, military facilities, schools, colleges, universities, hospitals, recreational theme parks, business or industrial foodservice venues, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location.

Carl's Jr. Restaurants are quick service restaurants offering a limited menu of breakfast, lunch and dinner products and featuring charbroiled 100% Black Angus Thickburger sandwiches, Hand-Breaded Chicken Tenders, Made from Scratch Biscuits, and other related quick serve menu items.

The Franchisor and Its Predecessor. CJR is a Delaware limited liability company organized on January 30, 2013. Our principal place of business is 6700 Tower Circle, Suite 1000, Franklin, Tennessee 37067. Our agents for service of process in various states are listed in Exhibit B. We do business under the name "Carl's Jr.". We have operated and offered franchises for Carl's Jr. Restaurants since April 1, 2013. As of January 27, 2025, there were 50 company-operated Carl's Jr. restaurants and there were 982 domestic franchised Carl's Jr. restaurants, including 218 Dual Concept restaurants. Dual Concept Restaurants are quick service Carl's Jr. Restaurants that also offer certain Green Burrito Mexican food

products. In addition, as of January 27, 2025, there were the following international franchised Carl's Jr. Restaurants: American Samoa – 1; Australia – 28; Cambodia – 6; Canada – 18; Chile – 28; Denmark – 16; Dominican Republic – 1; Ecuador – 26; France – 6; Guatemala – 4; India – 3; Japan – 4; Malaysia – 5; Mexico – 408; New Zealand – 18; Nicaragua – 4; Panama – 12; People's Republic of China – 4; Puerto Rico – 2; Russia – 17; Singapore – 4; Spain – 44; Switzerland – 3; and Turkey – 22. (American Samoa and Puerto Rico are considered to be international locations even though they are U.S. territories.) We do not engage in any other business or offer franchises in any other line of business.

Our predecessor is Carl Karcher Enterprises, Inc., a California corporation incorporated on February 7, 1966, whose principal place of business was 6307 Carpinteria Avenue, Carpinteria, California 93013. On March 26, 2013, it was converted from a corporation to a limited liability company, Carl Karcher Enterprises LLC, a Delaware limited liability company formed on February 25, 2013. Effective October 7, 2013, Carl Karcher Enterprises LLC was converted to a California limited liability company. Carl Karcher Enterprises LLC has the same principal place of business as ours. (Carl Karcher Enterprises, Inc. and Carl Karcher Enterprises LLC will be collectively referred to in this disclosure document as "CKE".) CKE operated Carl's Jr. Restaurants from 1966 until March 31, 2013. CKE also offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. From 1997 to 1998, CKE also offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants. CKE has not engaged in any other business or offered franchises in any other line of business.

On April 1, 2013, in connection with a financing transaction, CKE assigned to us all existing franchise agreements ("Franchise Agreements") and development agreements ("Development Agreements") governing franchised Carl's Jr. Restaurants so that we could expand and administer the Carl's Jr. System (through new franchises and other means) and, pursuant to a Contribution Agreement, CKE contributed to us its ownership of the "Carl's Jr." trade names, service marks and other trademarks that are associated with the Carl's Jr. System and we were assigned ownership of the "Green Burrito" trade names, service marks and other trademarks that are associated with the GB Dual Concept System (collectively, "Proprietary Marks"). In addition, substantially all of the real estate assets associated with the operation of company-owned Carl's Jr. Restaurants previously owned or leased by CKE (or its affiliates) and substantially all of the real estate leases and subleases between CKE (or its affiliates) and franchisees were assigned to us, and we assumed the operation of substantially all of the company-owned Carl's Jr. restaurants.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)

What This Means (2025 FDD)

According to the 2025 FDD, Carl's Jr. Restaurants LLC (CJR) is indeed a franchisor. The document explicitly states that CJR offers the opportunity to become a franchisee and operate a Carl's Jr. Restaurant. As of January 27, 2025, there were 982 domestic franchised Carl's Jr. restaurants. This indicates that Carl's Jr. actively engages in franchising its restaurant concept.

The FDD specifies that Carl's Jr. offers franchises for different types of locations, including Travel Center Locations and Gas and Convenience Locations, under the terms of the disclosure document. Additionally, Carl's Jr. offers franchises for traditional and nontraditional locations under separate disclosure documents with different terms and conditions. Nontraditional locations include airports, train stations, and military facilities.

The predecessor to CJR, Carl Karcher Enterprises (CKE), also offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. In 2013, CKE assigned all existing franchise agreements and development agreements to CJR, allowing CJR to expand and administer the Carl's Jr. system. This historical context further solidifies Carl's Jr.'s role as a franchisor with a long-standing presence in the restaurant industry.

In summary, the provided FDD excerpts clearly establish Carl's Jr. Restaurants LLC as a franchisor that actively grants franchises for the operation of Carl's Jr. restaurants in various locations, both domestically and internationally. The document also details the company's history of franchising and its ongoing efforts to expand its franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.