After termination or expiration of the Carls Jr. agreement, what must the franchisee do with the OPM (Operations Procedure Manual) and other materials furnished by CJR?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Franchisee shall not, except with respect to a restaurant franchised by CJR or its affiliates which is then open and operating pursuant to an effective franchise agreement or a restaurant franchised by CJR or its affiliates which is under construction pursuant to a fully-signed franchise agreement: (1) operate or do business under any name or in any manner that might tend to give the public the impression that Franchisee is connected in any way with CJR or its affiliates or has any right to use the System or the Proprietary Marks; (2) make, use or avail itself of any of the materials or information furnished or disclosed by CJR or its affiliates under this Agreement or disclose or reveal any such materials or information or any portion thereof to anyone else; or (3) assist anyone not licensed by CJR or its affiliates to construct or equip a foodservice outlet substantially similar to a Carl's Jr. Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, after the termination or expiration of the franchise agreement, the franchisee cannot make use of any materials or information furnished by CJR. Specifically, the franchisee is prohibited from using or availing themselves of any materials or information furnished or disclosed by CJR or its affiliates under the Franchise Agreement. Furthermore, the franchisee is barred from disclosing or revealing any such materials or information, or any portion thereof, to anyone else.
This restriction is in place to protect Carls Jr.'s proprietary information and system. The Operations Procedure Manual (OPM) contains confidential information critical to the Carls Jr. system, and unauthorized use or disclosure could harm the brand. This obligation extends beyond just the OPM to include any materials or information CJR provided during the franchise term.
In practical terms, this means a former Carls Jr. franchisee must cease using all training materials, marketing plans, operational guidelines, and any other resources provided by Carls Jr. They must also ensure that no third party gains access to this information. This is a standard clause in franchise agreements to prevent franchisees from using the franchisor's confidential information to operate a competing business or benefit another franchise system.