Does Carls Jr. have the right to change the standards and specifications of each item sold 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. retains the right to modify various aspects of the menu items sold at franchised restaurants. This includes the ability to change the menu items themselves, the ingredients used, the products and materials involved, the supplies and paper goods utilized, and the standards and specifications for each of these elements. There are no stated limits on Carls Jr.'s ability to make these changes. Franchisees are obligated to promptly implement these new requirements.
This provision grants Carls Jr. significant control over the products offered at its franchised locations, ensuring uniformity and brand consistency across all restaurants. For a franchisee, this means they must adapt to any changes Carls Jr. makes to the menu or product specifications, which could involve new training for staff, adjustments to inventory, and potential costs associated with implementing the new standards.
The FDD also states that franchisees must offer for sale and sell at the Franchised Restaurant all and only those products and services as are expressly authorized by Carls Jr. in the OPM or otherwise in writing. Carls Jr. may restrict sales of menu items to certain time periods during the day. This further emphasizes the control Carls Jr. maintains over the menu and offerings at its franchised locations.
While this level of control helps maintain brand standards, it also means franchisees have limited autonomy in deciding what to sell and how to prepare it. Prospective franchisees should carefully consider whether they are comfortable with these restrictions and the potential costs associated with implementing changes mandated by Carls Jr.