Are the standards for using Proprietary Marks by a Carls Jr. franchisee found in the OPM?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's right to use the Proprietary Marks is limited to its use of the Proprietary Marks in the operation of the Franchised Restaurant at the Franchised Location and as expressly provided in this Agreement and the OPM. Franchisee's limited license extends only to use of the Proprietary Marks in accordance with (i) all applicable standards, operating procedures, policies and guidelines that we prescribe—and from time to time amend—during the duration of this Agreement, including, without limitation, those set forth in the most current edition of the OPM and other publications, if any, dedicated to proper use of the Proprietary Marks; and (ii) all applicable laws and regulations pertaining to advertising and marketing, including, without limitation, federal and state laws pertaining to telemarketing (including the Telephone Consumer Protection Act), false advertising, unfair competition and unfair practices.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the standards for using Proprietary Marks by a franchisee are found in the Operations Procedures Manual (OPM). The franchise agreement grants the franchisee a limited license to use Carls Jr.'s Proprietary Marks, but this use must comply with all standards, operating procedures, policies, and guidelines prescribed by Carls Jr., including those detailed in the most current edition of the OPM. These standards are subject to change during the agreement. The Proprietary Marks include all trade names, trademarks, service marks, trade dress, logos, insignias, slogans, emblems, symbols, designs, and any other identifiers that CJR designates as identifying the Carls Jr. system.
Carls Jr. retains the right to modify the Proprietary Marks and advise franchisees of any additions or deletions, which will then modify the franchisee's right to use them. Franchisees must adhere to all applicable laws and regulations pertaining to advertising and marketing when using the Proprietary Marks. This includes laws related to telemarketing, false advertising, unfair competition, and unfair practices. Franchisees are essentially custodians of the brand's image and must ensure their usage aligns with Carls Jr.'s directives and legal requirements.
The OPM also contains specifications, brand standards, and operating procedures that Carls Jr. may prescribe and communicate to the franchisee in writing. These standards cover a wide array of operational aspects, including the appearance of the restaurant, the type and quality of food products, sales and marketing procedures, employee appearance, and the use of signs and logos. Compliance with these standards, whether found in the OPM or other written communications, is a requirement of the franchise agreement.
Therefore, a prospective Carls Jr. franchisee should carefully review the OPM and any updates to fully understand the standards for using the Proprietary Marks and other operational requirements. This ensures they can meet Carls Jr.'s expectations and maintain the brand's integrity.