Regarding delivery services for Carls Jr., are the Selected Delivery Service Providers considered third-party beneficiaries of the Operator's obligations, as outlined in the agreement?

According to the 2025 Carls Jr. Franchise Disclosure Document, the Selected Delivery Service Providers are indeed considered third-party beneficiaries of the Operator's obligations. Specifically, this arrangement is designed to facilitate direct dispute resolution between the Carls Jr. operator and each delivery service provider concerning the operator's use of delivery services. This means that the delivery services can directly enforce certain obligations that the operator has agreed to.

This third-party beneficiary status is contractually committed to by Olo's Delivery Service Providers, who agree not to assert a defense based on lack of privity against any operator seeking to enforce their third-party beneficiary rights. Olo, the platform facilitating these interactions, will inform the operator which delivery service providers are subject to these third-party beneficiary obligations. This setup ensures that Carls Jr. franchisees have recourse directly against delivery service providers if the providers fail to meet their obligations.

For a prospective Carls Jr. franchisee, this is a beneficial arrangement. It provides an added layer of protection and recourse when dealing with delivery service providers, ensuring that the franchisee isn't solely reliant on Olo to resolve disputes. This can be particularly important in maintaining service quality and addressing issues like late deliveries or mishandled orders, which directly impact customer satisfaction and the Carls Jr. brand reputation. The franchisee should confirm with Olo which specific Delivery Service Providers have agreed to these third-party beneficiary obligations.