Does Carls Jr. have the right to change the materials used at the franchised restaurant?

According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. has extensive rights to modify various aspects of the franchise system, including the materials used at the franchised restaurant. Carls Jr. can change the menu items, ingredients, products, materials, supplies, and paper goods, as well as their standards and specifications. There are no limits on Carls Jr.'s ability to make these changes, and franchisees must promptly comply with any new requirements.

Carls Jr. also has the right to develop proprietary food products with special recipes and formulas. Franchisees are required to purchase these specific food products only from Carls Jr., its affiliates, or designated and licensed third parties. For all other goods, food products, ingredients, spices, materials, supplies, and cleaning products, franchisees must purchase from suppliers approved by Carls Jr. These goods must meet the standards and specifications that Carls Jr. sets.

Carls Jr. can modify the list of approved brands and/or suppliers, and franchisees must stop reordering from any supplier that is no longer approved after receiving written notification of the change. This control ensures that Carls Jr. can maintain the quality and consistency of its brand across all franchise locations. This also allows Carls Jr. to negotiate better deals with suppliers by concentrating purchases, potentially benefiting the entire franchise system.

These stipulations mean that a Carls Jr. franchisee must be prepared to adapt to changes in materials and suppliers dictated by the franchisor. While this ensures brand consistency and potentially lower costs through bulk purchasing, it also limits the franchisee's autonomy in sourcing products and managing their supply chain. Franchisees need to stay informed of any changes and promptly implement them to remain compliant with the franchise agreement.