What are the restrictions on the Multi-Unit Manager's other business activities while supervising a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee operates restaurants that are franchised by CJR or its affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy the requirements of Section 16.G., Franchisee shall designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager shall be under the supervision of the Operating Principal. The Multi-Unit Manager shall meet all of the following qualifications:
- (1) The Multi-Unit Manager shall devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by CJR or its affiliates) operated by Franchisee in the same geographic market and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a Multi-Unit Manager must devote their full time and best efforts to supervising the operation of the franchised restaurant and other Carls Jr. restaurants operated by the franchisee in the same geographic market.
Specifically, the Multi-Unit Manager is restricted from engaging in any other business or activity, whether directly or indirectly, that demands substantial management responsibility. This restriction ensures that the Multi-Unit Manager is fully dedicated to the Carls Jr. franchise and its operations.
This requirement is in place if the franchisee operates restaurants in multiple markets franchised by Carls Jr. or its affiliates, and the Operating Principal does not meet specific requirements. The Multi-Unit Manager operates under the supervision of the Operating Principal, ensuring a structured management hierarchy.