Can Carls Jr. require a franchisee's website to be hosted by them or a designated third party?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use our Proprietary Marks in any Internet domain name or e-mail address, in the operation of any Internet web site or on a social media platform including any social networking site, Facebook, Twitter, Instagram, Pinterest, YouTube, Snapchat, Vine, blogs, podcasts and wikis or other future social media platforms and/or technological avenues (collectively, "Social Media"; not an exclusive list and term applies to any social networking website, mobile application, blog or microblog, public and private message boards, comment sections, etc.) without our prior written consent. We may grant or withhold our consent in our sole discretion and may condition our consent on such requirements as we deem appropriate, including, among other things, that you obtain our written approval of: (A) any and all Internet domain names and home page addresses related to the Franchised Restaurant; (B) the proposed form and content of any web site related to the Franchised Restaurant; (C) your use of any hyperlinks or other links; (D) your use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has an ownership interest; and (E) any proposed modification of your web site. We may designate the form and content of your web site and/or require that any such web site be hosted by us or a third party whom we designate, using one or more web sites that we own and/or control. We may charge you a fee for developing, reviewing and approving your web site and/or for hosting the web site. We have established a Social Media policy for all franchisees, and you must comply with the policy, as modified from time to time, and any additional policies that we issue. Any copyright in your sites or pages on any Social Media are owned by us, and you must sign any documents that we reasonably deem necessary to affirm our ownership of the copyright.
Source: Item 13 — TRADEMARKS (FDD pages 56–58)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. maintains significant control over a franchisee's website. Specifically, Carls Jr. may designate the form and content of a franchisee's website. More importantly, Carls Jr. can require that the franchisee's website be hosted by Carls Jr. itself, or by a third party that Carls Jr. designates. Carls Jr. is also permitted to use one or more websites that they own or control for this purpose.
Carls Jr. also has the right to charge franchisees a fee for developing, reviewing, and approving their website, as well as for hosting the website. This means that franchisees may incur additional costs related to their online presence beyond the initial website setup. Franchisees must also obtain written approval from Carls Jr. for various aspects of their website, including domain names, content, hyperlinks, and any modifications.
Furthermore, franchisees must adhere to Carls Jr.'s Social Media policy, which may be modified from time to time. Any copyright in the franchisee's sites or pages on social media platforms is owned by Carls Jr., and franchisees are required to sign documents affirming this ownership. This level of control is relatively common in franchising, as franchisors seek to maintain brand consistency and quality across all online platforms. Prospective franchisees should carefully consider these requirements and potential costs when evaluating a Carls Jr. franchise.