Under what conditions might a Carls Jr. franchisee be required to execute a software license agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
You must utilize any
proprietary software program, system documentation manuals and other proprietary materials provided by us in connection with the operation of the Franchised Restaurant. When we provide proprietary software, we may require that you execute one or more standard form software license or similar agreements and input and maintain in your computer the software programs, data and information as we prescribe. You must purchase from us, at prices and upon terms that we determine, the proprietary software programs, manuals and/or computer-related materials whenever we decide to use new or upgraded programs, manuals and/or materials throughout the Carl's Jr. System. Except as described in Items 6 and 11 with respect to the Digital Tech Fee, Star University Access Fee and Software Support Fee, there are currently no payments to be made to us in connection with these items.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee may be required to execute a software license agreement under specific conditions related to proprietary software. Carls Jr. may require franchisees to execute one or more standard form software license or similar agreements when the franchisor provides proprietary software for use in the operation of the franchised restaurant. This ensures that franchisees have the legal right to use the software according to the franchisor's terms.
Carls Jr. also mandates that franchisees input and maintain the software programs, data, and information as prescribed by the franchisor. This ensures uniformity and standardization across all franchised locations, which is crucial for maintaining brand consistency and operational efficiency. Franchisees are also obligated to purchase proprietary software programs, manuals, and/or computer-related materials from Carls Jr. whenever the franchisor decides to implement new or upgraded programs throughout the Carls Jr. system.
This requirement ensures that all franchisees are using the most current and approved software, which can include updates for point-of-sale systems, data processing, and other operational tools. While franchisees must purchase these items from Carls Jr., the FDD specifies that, except for the Digital Tech Fee, Star University Access Fee, and Software Support Fee, there are currently no other payments to be made to Carls Jr. in connection with these software-related items. This provides some clarity on the potential costs associated with these requirements, allowing prospective franchisees to better understand their financial obligations.