Does Carls Jr. have the right to change the paper goods used at the franchised restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You must offer for sale and sell at the Franchised Restaurant all and only those products and services as are expressly authorized by us in the OPM or otherwise in writing. We may restrict sales of menu items to certain time periods during the day. We have the right to change the menu items, ingredients, products, materials, supplies and paper goods or the standards and specifications of each, and there are no limits on our ability to do so. You must promptly comply with the new requirements. We do not limit the customers to whom you may sell goods or services. You must offer to customers online ordering and delivery services pursuant to online ordering/delivery programs that we may from time to time establish with approved vendors and comply with our specifications regarding same.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. has the authority to modify the paper goods used at its franchised restaurants. Specifically, Carls Jr. retains the right to change the menu items, ingredients, products, materials, supplies, and paper goods, as well as their standards and specifications. There are no limitations on Carls Jr.'s ability to make these changes, and franchisees must promptly comply with any new requirements.
This provision grants Carls Jr. significant control over the brand's consistency and quality. By maintaining the right to alter paper goods and other supplies, Carls Jr. can ensure that all franchised locations adhere to the company's standards. This control extends to menu items, ingredients, and other products, allowing Carls Jr. to adapt to changing consumer preferences or market conditions.
For a prospective franchisee, this means they must be prepared to adapt to changes in the required paper goods and other supplies. While this ensures brand uniformity, it also means franchisees may need to adjust their inventory and operational procedures to accommodate these changes. Franchisees should factor in the potential costs associated with these changes, such as disposing of old inventory and purchasing new supplies that meet the updated specifications.
Overall, this clause in the Franchise Disclosure Document highlights the importance of adhering to Carls Jr.'s standards and specifications. Franchisees must be willing to comply with any changes made by the franchisor to maintain the consistency and quality of the Carls Jr. brand.