Does Carls Jr. have the right to change the supplies 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 required menu items, ingredients, products, materials, supplies, and paper goods, including their standards and specifications. There are no explicit limitations on Carls Jr.'s ability to make these changes, and franchisees are obligated to promptly comply with any new requirements. This extends to dictating the brands franchisees must use and prohibiting others.
This means that a Carls Jr. franchisee must be prepared to adapt their restaurant operations to accommodate changes in the required supplies and products. These changes could impact costs, requiring the franchisee to source new products or materials, potentially at different prices. Failure to comply with these changes could result in the franchisee being out of compliance with the franchise agreement.
Carls Jr. also has the right to inspect the franchised restaurant at any reasonable time and without prior notice to ensure compliance with specifications, quality standards, operating procedures, and brand standards. During these inspections, Carls Jr. can remove samples of any food and beverage product, material, or other products for testing and analysis. Franchisees are expected to correct any deficiencies detected during these inspections immediately, including ceasing the use of any equipment, advertising materials, or supplies that do not conform to Carls Jr.'s standards.
Furthermore, Carls Jr. may modify the list of approved brands and/or suppliers from time to time, and franchisees must cease reordering any brand from any supplier that is no longer approved after receiving written notification of such modification. This gives Carls Jr. significant control over the supply chain and product offerings at franchised locations, ensuring consistency across the brand but also requiring franchisees to adapt to changes as they are implemented.