Does Carls Jr. have the right to modify the Licensed Program and Content?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 License. Licensor grants Licensee a non-exclusive, non-transferable license to use the online Web sites and Web-based applications set forth on Exhibit A to access the Licensed Program and Content offered under the terms of this Agreement solely for Licensee's internal operations at each Franchised Restaurant at which Licensee remains Franchisor's franchisee in good standing ("License"). Licensor has the right to add, modify and/or remove features and elements of the Licensed Program and Content from time to time, without notice to, or the consent of, Licensee. Any data and reports generated by Licensee's use of the Licensed Program and Content are owned solely by Licensor.
- 1.2 Use of Licensed Program and Content. Licensee shall use the Licensed Program and Content solely for the purposes Licensor expressly permits from time to time in writing and in strict compliance with the standards issued in writing from time to time by Licensor. When accessing the Licensed Program and Content, Licensee shall follow any instructions issued in writing by Licensor.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. retains the right to modify the Licensed Program and Content. Specifically, under the license agreement, Carls Jr., as the Licensor, has the authority to add, modify, or remove features and elements of the Licensed Program and Content without needing to provide notice or obtain consent from the franchisee (Licensee). This means that Carls Jr. can unilaterally make changes to the online websites and web-based applications that franchisees use for their internal operations.
Furthermore, any data and reports generated through the franchisee's use of the Licensed Program and Content are owned solely by Carls Jr. This underscores that while franchisees utilize these tools, they do not have ownership over the resulting information. The franchisee is obligated to use the Licensed Program and Content strictly for the purposes that Carls Jr. expressly permits in writing and in compliance with the standards issued by Carls Jr. This includes following any instructions provided by Carls Jr. when accessing the program and content.
This arrangement ensures that Carls Jr. maintains control over its systems and data, allowing it to adapt and evolve the Licensed Program and Content as needed. However, it also means that franchisees must be prepared for changes to these tools and may not have direct input or control over their functionality. Franchisees should stay informed of any updates or modifications communicated by Carls Jr. to ensure compliance and effective use of the Licensed Program and Content.