Does Carls Jr. have the right to retrieve data from a franchisee's computers?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to procure and install such data processing equipment computer hardware and software, required dedicated telephone and power lines, high speed Internet connections, modems, printers and other computer-related accessory or peripheral equipment as CJR specifies in the OPM or otherwise. All of the foregoing must be able to provide CJR that information, in that format/medium, as CJR reasonably may specify from time to time. Franchisee shall provide all assistance required by CJR to bring Franchisee's computer system on-line with the computer system designated by CJR and maintained by CJR or its affiliates at the earliest possible time. Franchisee agrees that CJR shall have the free and unfettered right to retrieve any data and information from Franchisee's computers as CJR, in its sole discretion, deems appropriate, including electronically polling the daily sales, menu mix and other data of the Franchised Restaurant. All of the hardware and software specified to be installed or purchased, or activities Franchisee is to accomplish, and the delivery cost of all hardware and software, shall be at Franchisee's expense.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. does have the right to retrieve data from a franchisee's computers. The franchisee must procure and install the data processing equipment, computer hardware and software, required telephone and power lines, high speed Internet connections, modems, printers and other computer-related equipment as specified by Carls Jr.
Carls Jr. requires that the franchisee provide any assistance needed to bring the franchisee's computer system online with the computer system designated and maintained by Carls Jr. or its affiliates as soon as possible. Carls Jr. has the right to retrieve any data and information from the franchisee's computers as Carls Jr. deems appropriate, including electronically polling the daily sales, menu mix, and other data of the franchised restaurant.
All hardware and software specified to be installed or purchased, or activities the franchisee is to accomplish, and the delivery cost of all hardware and software, are at the franchisee's expense. This means a prospective Carls Jr. franchisee should be prepared for ongoing technology expenses and upgrades mandated by the franchisor.