What standards must the Carls Jr. Licensee comply with when using the Licensed Program and Content?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, a licensee must adhere to specific standards when using the Licensed Program and Content. Carls Jr. requires that the Licensed Program and Content be used solely for purposes that Carls Jr. expressly permits in writing and in strict compliance with the standards issued in writing by Carls Jr. from time to time. Licensees must also follow any written instructions issued by Carls Jr. when accessing the Licensed Program and Content.
This means that a Carls Jr. franchisee cannot use the Licensed Program and Content for any unauthorized purposes or in any way that deviates from the standards and instructions provided by Carls Jr. The franchisee's use is limited to internal operations at each franchised restaurant where they remain a franchisee in good standing. Carls Jr. retains the right to modify or remove features of the Licensed Program and Content without notice or consent from the franchisee, and all data and reports generated from the use of the Licensed Program and Content are owned solely by Carls Jr.
Furthermore, the franchisee is prohibited from distributing the Licensed Program or Content to any third party, copying, adapting, reverse engineering, decompiling, disassembling, or modifying any part of it. They also cannot use the Licensed Program or Content in a time-sharing, outsourcing, or service bureau environment, or allow third-party access. This ensures that the franchisee's use of the Licensed Program and Content remains within the bounds set by Carls Jr. and protects the intellectual property rights associated with it.
Failure to comply with these standards could result in a breach of the license agreement and potential legal consequences. Therefore, it is crucial for a prospective Carls Jr. franchisee to carefully review and understand the standards and instructions provided by Carls Jr. regarding the use of the Licensed Program and Content.