Under what circumstances can the agreement regarding the Licensed Program and Content for Carls Jr. be terminated?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1 Term. Unless this Agreement is terminated by its terms, the term of this Agreement commences on the Effective Date and remains in force until the earlier of: (a) for each Franchised Restaurant, the termination or expiration of the respective Franchise Agreement; or (b) Licensor's determination, in its sole discretion, to require Licensee to license from Licensor or a third-party provider the same or different licensed program and/or content under then-applicable terms. If Licensor loses the right to provide Licensee access to the Licensed Program, then this Agreement shall be amended or terminated as necessary. In addition, Licensee shall have the right to terminate this Agreement for any reason and at any time by providing Licensor with 60 days written notice of its intent to cease using the Licensed Program and Content.
- 8.2 Cessation of Use. Upon termination of this Agreement, Licensor will disconnect Licensee from the Licensed Program and Content and deactivate passwords, as applicable. Licensee shall cease
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the agreement regarding the Licensed Program and Content can be terminated under several circumstances. The agreement remains in force until the termination or expiration of the Franchise Agreement for each franchised restaurant. Additionally, Carls Jr. has the sole discretion to require the franchisee to license a different program or content under new terms, which would effectively terminate the existing agreement. If Carls Jr. loses the right to provide access to the Licensed Program, the agreement will be amended or terminated as necessary.
A franchisee also has the right to terminate the agreement at any time, for any reason, by providing Carls Jr. with 60 days written notice of their intent to stop using the Licensed Program and Content. Upon termination, Carls Jr. will disconnect the franchisee from the Licensed Program and Content, and the franchisee must cease using the program and return or destroy all copies of related materials and confidential information.
These termination conditions are important for a prospective Carls Jr. franchisee to understand, as they outline the circumstances under which access to the Licensed Program and Content can be discontinued. The franchisee should be aware of Carls Jr.'s right to change the program or content and the franchisee's obligation to cease using the program upon termination, as well as the potential impact on their restaurant operations.