Until what date did Carl Karcher Enterprises LLC operate Carls Jr. Restaurants?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Our predecessor is Carl Karcher Enterprises, Inc., a California corporation incorporated on February 7, 1966, whose principal place of business was 6307 Carpinteria Avenue, Carpinteria, California 93013. On March 26, 2013, it was converted from a corporation to a limited liability company, Carl Karcher Enterprises LLC, a Delaware limited liability company formed on February 25, 2013. Effective October 7, 2013, Carl Karcher Enterprises LLC was converted to a California limited liability company. Carl Karcher Enterprises LLC has the same principal place of business as ours. (Carl Karcher Enterprises, Inc. and Carl Karcher Enterprises LLC will be collectively referred to in this disclosure document as "CKE".) CKE operated Carl's Jr. Restaurants from 1966 until March 31, 2013. CKE also offered franchises for Carl's Jr. Restaurants from 1984 until March 31, 2013. From 1997 to 1998, CKE also offered franchises to operate Carl's Jr./Hardee's Dual Concept Restaurants. CKE has not engaged in any other business or offered franchises in any other line of business.
The Financing Transaction and the Management Agreement. On April 1, 2013, in connection with a financing transaction, CKE assigned to us all existing franchise agreements ("Franchise Agreements") and development agreements ("Development Agreements") governing franchised Carl's Jr. Restaurants so that we could expand and administer the Carl's Jr. System (through new franchises and other means) and, pursuant to a Contribution Agreement, CKE contributed to us its ownership of the "Carl's Jr." trade names, service marks and other trademarks that are associated with the Carl's Jr. System and we were assigned ownership of the "Green Burrito" trade names, service marks and other trademarks that are associated with the GB Dual Concept System (collectively, "Proprietary Marks"). In addition, substantially all of the real estate assets associated with the operation of company-owned Carl's Jr. Restaurants previously owned or leased by CKE (or its affiliates) and substantially all of the real estate leases and subleases between CKE (or its affiliates) and franchisees were assigned to us, and we assumed the operation of substantially all of the company-owned Carl's Jr. restaurants.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carl Karcher Enterprises LLC (CKE) operated Carls Jr. Restaurants until March 31, 2013. CKE began operating Carls Jr. Restaurants in 1966. In addition to operating the restaurants, CKE also offered franchises for Carls Jr. Restaurants starting in 1984, and from 1997 to 1998, they offered franchises for Carl's Jr./Hardee's Dual Concept Restaurants.
On April 1, 2013, CKE assigned all existing franchise and development agreements to Carl's Jr. Restaurants LLC in connection with a financing transaction. CKE also contributed its ownership of the 'Carl's Jr.' trade names, service marks, and other trademarks to Carl's Jr. Restaurants LLC. This transfer allowed Carl's Jr. Restaurants LLC to expand and manage the Carls Jr. system through new franchises and other methods.
Furthermore, Carl Karcher Enterprises LLC transferred most of its real estate assets related to company-owned Carls Jr. Restaurants, including leases and subleases with franchisees, to Carl's Jr. Restaurants LLC. Carl's Jr. Restaurants LLC also assumed the operation of most of the company-owned Carls Jr. restaurants. This comprehensive transfer marked a significant shift in the operational and franchising responsibilities from CKE to Carl's Jr. Restaurants LLC.