Does the restriction on operating a competing restaurant apply to other restaurants franchised by CJR or its affiliates that are operated by the Carls Jr. franchisee?

According to the 2025 Carls Jr. Franchise Disclosure Document, the restriction on operating a competing restaurant does not apply to other restaurants franchised by CJR or its affiliates that are operated by the Carls Jr. franchisee. Specifically, the document states that the restriction does not apply to other restaurants operated by the franchisee that are franchised by CJR or its affiliates.

This means that a Carls Jr. franchisee is allowed to operate other restaurant businesses that are also franchised by CJR or its affiliates without violating the non-compete clause in the franchise agreement. This provision allows franchisees to diversify their business interests within the Carls Jr. franchise system or its affiliated brands.

However, the franchisee must disclose any existing restaurant or foodservice operations in Appendix A of the franchise agreement. This disclosure ensures transparency and allows Carls Jr. to assess any potential conflicts of interest. Additionally, during the term of the agreement, the franchisee must not engage in any other business or activity that may conflict with their obligations under the agreement, except for the operation of other Carls Jr. Restaurants or other restaurants franchised by CJR or its affiliates, or other restaurants disclosed in Appendix A.