What warranties, other than those explicitly stated in the agreement, does Olo disclaim in relation to Carls Jr. franchisees?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CKR EXPRESSLY DISCLAIMS, AND FRANCHISEE HEREBY EXPRESSLY WAIVES, ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CKR DOES NOT WARRANT THAT THE LICENSED PRODUCTS WILL MEET FRANCHISEE'S REQUIREMENTS OR THAT THE OPERATION OF THE LICENSED PRODUCTS WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT ERRORS IN THE LICENSED PRODUCTS WILL BE CORRECTED. THE ENTIRE RISK OF THE QUALITY AND PERFORMANCE OF THE LICENSED PRODUCTS IS WITH FRANCHISEE. FRANCHISEE ACKNOWLEDGES AND AGREES THAT FRANCHISEE IS ACCEPTING EACH OF THE LICENSED PRODUCTS UNDER THIS LICENSE IN ITS "AS IS" CONDITION.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, CKR (Carls Jr. Restaurants LLC) expressly disclaims all warranties, whether express or implied, regarding the Licensed Products that franchisees use. This disclaimer includes warranties of merchantability and fitness for a particular purpose. CKR does not guarantee that the Licensed Products will meet a franchisee's specific requirements, operate without interruption or errors, or that all errors will be corrected. The franchisee bears the entire risk regarding the quality and performance of these Licensed Products and accepts them in their "AS IS" condition.
This means that if a Carls Jr. franchisee experiences issues with the software, such as the point-of-sale system or back-office system, they cannot hold CKR responsible for ensuring the software works as expected or for any losses incurred due to software malfunctions. The franchisee is essentially on their own to deal with any problems that arise with the software's performance or suitability for their business needs.
This disclaimer has significant implications for prospective Carls Jr. franchisees. It highlights the importance of carefully evaluating the Licensed Products and understanding their limitations before investing in the franchise. Franchisees should consider seeking independent technical advice to assess the suitability and reliability of the software for their specific needs. Additionally, franchisees should budget for potential software-related expenses, such as troubleshooting, updates, or even replacement if the Licensed Products do not perform adequately.
While CKR provides some in-house technical support for the Licensed Products, the "NO WARRANTY" clause makes it clear that this support does not come with any guarantees. Franchisees need to be prepared to handle software issues independently or through third-party support, bearing the associated costs and risks. This aspect should be carefully considered as part of the overall investment and operational planning for a Carls Jr. franchise.