Does Carls Jr. have the right to charge a fee for developing, reviewing, and approving a franchisee's website?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use our Proprietary Marks in any Internet domain name or e-mail address, in the operation of any Internet web site or on a social media platform including any social networking site, Facebook, Twitter, Instagram, Pinterest, YouTube, Snapchat, Vine, blogs, podcasts and wikis or other future social media platforms and/or technological avenues (collectively, "Social Media"; not an exclusive list and term applies to any social networking website, mobile application, blog or microblog, public and private message boards, comment sections, etc.) without our prior written consent. We may grant or withhold our consent in our sole discretion and may condition our consent on such requirements as we deem appropriate, including, among other things, that you obtain our written approval of: (A) any and all Internet domain names and home page addresses related to the Franchised Restaurant; (B) the proposed form and content of any web site related to the Franchised Restaurant; (C) your use of any hyperlinks or other links; (D) your use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has an ownership interest; and (E) any proposed modification of your web site. We may designate the form and content of your web site and/or require that any such web site be hosted by us or a third party whom we designate, using one or more web sites that we own and/or control. We may charge you a fee for developing, reviewing and approving your web site and/or for hosting the web site. We have established a Social Media policy for all franchisees, and you must comply with the policy, as modified from time to time, and any additional policies that we issue. Any copyright in your sites or pages on any Social Media are owned by us, and you must sign any documents that we reasonably deem necessary to affirm our ownership of the copyright.
Source: Item 13 — TRADEMARKS (FDD pages 56–58)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. does have the right to charge franchisees a fee for developing, reviewing, and approving their websites. This is explicitly stated in Item 13, which discusses the use of Carls Jr.'s trademarks online. Franchisees must obtain written consent from Carls Jr. to use the Proprietary Marks in any Internet domain name, website, or social media platform.
Carls Jr. has the discretion to grant or withhold consent for a franchisee's online presence and can impose requirements as they deem appropriate. These requirements include written approval of domain names, website content, hyperlinks, third-party materials, and any website modifications. Furthermore, Carls Jr. can designate the form and content of the franchisee's website and require that it be hosted by Carls Jr. or a third party chosen by them.
The FDD specifies that Carls Jr. may charge a fee for these services, including developing, reviewing, and approving the franchisee's website, as well as for hosting the website. This means that prospective franchisees should factor in potential website-related costs when considering the overall investment. Additionally, franchisees must adhere to Carls Jr.'s Social Media policy, which may be modified from time to time, and any additional policies issued by the company. Carls Jr. retains ownership of any copyright in the franchisee's sites or pages on any Social Media, and franchisees must sign documents to affirm this ownership.
This level of control over a franchisee's website and social media presence is not uncommon in franchising, as franchisors seek to maintain brand consistency and protect their trademarks. However, the potential for Carls Jr. to charge fees for website-related services is an important consideration for prospective franchisees, as it can add to the cost of doing business. Franchisees should inquire about the typical range of these fees and the extent of Carls Jr.'s involvement in website development and maintenance.