Misplaced Pages

#556443

107-514: In October 2020, CKE Restaurants operated or franchised to locations in 44 US states and 43 foreign countries and US territories . In 1941, Carl's Jr. founder, Carl Karcher , entered the fast food market by purchasing a hot dog cart in Los Angeles . In 1956, Karcher opened the first Carl's Jr. restaurants in Anaheim and Brea, California . In 1996, CKE acquired Rally's and Taco Bueno . Rally's

214-448: A franchise disclosure document (FDD), no laws require an estimate of franchisee profitability, which depends on how intensively the franchisee "works" the franchise. Therefore, franchisor fees are typically based on "gross revenue from sales" and not on profits realized. See remuneration . Various tangibles and intangibles such as national or international advertising , training and other support services are commonly made available by

321-514: A "drug cooperative". As he explained to them, they could increase profits by paying less for their purchases, especially if they set up their own manufacturing company. His idea was to market private label products. About 40 druggists pooled $ 4,000 of their own money and adopted the name Rexall . Sales soared, and Rexall became a franchisor. The chain's success set a pattern for other franchisors to follow. Although many business owners did affiliate with cooperative ventures of one type or another, there

428-558: A $ 693.9 million takeover offer from Apollo Global Management , ending the earlier takeover agreement with THL Partners. On November 20, 2013, Roark Capital Group acquired a piece of CKE from Apollo Global Management for $ 1.65–$ 1.75 billion. On March 4, 2016, CKE Restaurants Holdings announced that they would be consolidating their corporate offices in St. Louis, Missouri , and Carpinteria, California , and moving them to Franklin, Tennessee . CKE's Anaheim, California, office remained open until it

535-738: A GDP of $ 104.989 billion in 2019, to American Samoa, which has a GDP of $ 636 million in 2018. In 2018, Puerto Rico exported about $ 18 billion in goods, with the Netherlands as the largest destination. Guam's GDP shrank by 0.3% in 2018, the GDP of the Northern Mariana Islands shrank by 19.6% in 2018, Puerto Rico's GDP grew by 1.18% in 2019, and the U.S. Virgin Islands' GDP grew by 1.5% in 2018. In 2017, American Samoa's GDP shrank by 5.8%, but then grew by 2.2% in 2018. American Samoa has

642-611: A U.S. court in Puerto Rico: The United States District Court is not a true United States court established under article   3 of the Constitution to administer the judicial power of the United States   ... It is created   ... by the sovereign congressional faculty, granted under article 4, 3, of that instrument, of making all needful rules and regulations respecting the territory belonging to

749-438: A customer who had a bad experience at one franchise may assume that they will have the same experience at other locations with other services. Distance can make it difficult for firms to detect whether or not the franchises are of poor quality. One way around this disadvantage is to set up extra subsidiaries in each country or state in which the firm expands. This creates a smaller number of franchisees to oversee, which will reduce

856-416: A fair price from the franchisor or sources recommended by the franchisor. A coffee brew, for example, can be readily identified by the trademark if its raw materials come from a particular supplier. If the franchisor requires purchase from her stores, it may come under anti-trust legislation or equivalent laws of other countries. So, too, with purchases such as the uniforms of personnel and signs, as well as

963-577: A federal territorial court, and so federal matters in American Samoa are sent to either the District court of Hawaii or the District court of the District of Columbia . American Samoa is the only permanently inhabited region of the United States with no federal court. While the U.S. mainland is majority non-Hispanic White , this is not the case for the U.S. territories. In 2010, American Samoa's population

1070-399: A foreign market on its own, as the franchisee is typically responsible for those costs and risks, putting the onus on them to build a profitable operation as quickly as possible. Through franchising, a firm has the potential of building a global presence quickly and also at a low cost and risk. For the franchisee, the primary advantages are access to a well-known brand, support in setting up

1177-515: A former master franchisee of the country's largest franchise system led to a review of the need for franchise law by the Ministry of Economic Development. The New Zealand Government decided there was no case for franchise-specific legislation at that time. This decision was criticised by the opposition, which had initiated the review when in power, and the review process was questioned by a leading academic. The Franchise Association originally supported

SECTION 10

#1732884349557

1284-443: A franchise agreement. The word franchise is of Anglo-French derivation—from franc , meaning 'free'—and is used both as a noun and as a (transitive) verb. For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or " chain stores ". Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes

1391-450: A franchisor: (a) a royalty for the trademark, (b) reimbursement for the training and advisory services given to the franchisee, and (c) a percentage of the individual business unit's sales. These three fees may be combined in a single 'management' fee. A fee for "disclosure" is separate and is always a "front-end fee". A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves

1498-399: A great extent. Consequently, franchising was not a growth industry in the United States. It was not until the 1960s and 1970s that people began to take a close look at the attractiveness of franchising. The concept intrigued people with entrepreneurial spirit. However, there were serious pitfalls for investors, which almost ended the practice before it became truly popular. The United States

1605-409: A number of female celebrities including Heidi Klum , Kim Kardashian , Kate Upton , and Katherine Webb . A study found that 52 percent of viewers surveyed found a Carl's Jr. commercial starring bombshell Charlotte McKinney offensive. Carl’s Jr. is led by parent company CKE Restaurants Holdings, and from 2000 to 2017, CKE was run by Andrew F. Pudzer , who was a very vocal advocate of the racy ads. By

1712-402: A percentage of the money they collected and turned the rest over. The practice ended around 1562 but spread to other endeavors. For example, in 17th-century England franchisees were granted the right to sponsor markets and fairs or operate ferries . There was little growth in franchising, though, until the mid-19th century, when it appeared in the United States for the first time. One of

1819-584: A result, these territories are often considered colonies of the United States. All modern inhabited territories under the control of the federal government can be considered as part of the "United States" for purposes of law as defined in specific legislation. However, the judicial term "unincorporated" was coined to legitimize the late-19th-century territorial acquisitions without citizenship and their administration without constitutional protections temporarily until Congress made other provisions. The case law allowed Congress to impose discriminatory tax regimes with

1926-546: A sales revenue of approximately $ 66.5 billion. In 2016 the majority of franchise brands were retailers with the largest segment being non-food retailing, accounting for 26 percent of brands, a further 19 percent of brands were involved in food retailing, 15 percent of franchisors operated in administration and support services, 10 percent in other services, 7 percent in education and training and 7 percent in rental, hire and real estate services. Franchising in Australia commenced in

2033-412: A significant way in the early 1970s under the influence of the franchised US fast food systems such as KFC , Pizza Hut , and McDonald's . It was however underway prior to this and a decade earlier in 1960 Leslie Joseph Hooker , considered a pioneer of franchising, created Australia's first national real estate agency network of Hooker real estate agencies. In Australia, franchising is regulated by

2140-548: A small franchisee. Thirty-six countries have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect effect on franchising. Franchising is also used as a foreign market entry mode . The boom in franchising did not take place until after World War II . Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors , who retained

2247-413: A specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for

SECTION 20

#1732884349557

2354-628: Is a leader in franchising, a position it has held since the 1930s when it used the approach for fast-food restaurants, food inns and, slightly later, motels at the time of the Great Depression . As of 2005, there were 909,253 established franchised businesses, generating $ 880.9 billion of output and accounting for 8.1 percent of all private, non-farm jobs. This amounts to 11 million jobs, and 4.4 percent of all private sector output. Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all

2461-417: Is also a powerful corporate entity controlling a highly lucrative location and/or captive market (for example, a large sports stadium) in which prospective franchisors must then compete to exclude one another from. However, under specific circumstances like transparency, favourable legal conditions, financial means and proper market research, franchising can be a vehicle of success for both a large franchisor and

2568-437: Is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property , use of its business model , brand, and rights to sell its branded products and services to a franchisee. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in

2675-615: Is disputed by Haiti , Wake Island is disputed by the Marshall Islands , Swains Island (a part of American Samoa ) is disputed by Tokelau , and Bajo Nuevo Bank and Serranilla Bank are both administered by Colombia, whose claim is disputed by the U.S. and Jamaica . The following two territories are claimed by multiple countries (including the United States) and are not included in ISO 3166-2:UM . However, they are sometimes grouped with

2782-437: Is entered into. The code also regulates the content of franchise agreements, for example in relation to marketing funds, a cooling-off period , termination, and the resolution of disputes by mediation . On 1 January 2015, the old Franchising Code was repealed and replaced with a new Franchising Code of Conduct. The new Code applies to conduct on or after 1 January 2015. The new Code: These are significant changes and it

2889-600: Is important that franchisors, franchisees and potential franchises understand their rights and responsibilities under the Code. For further information about the changes to the Code, please see the updated Franchisor Compliance Manual and the Franchisee Manual. The Code explanatory materials are available from the ComLaw website (link is external). New Zealand is served by around 423 franchise systems operating 450 brands, giving it

2996-437: Is necessary to operate complicated equipment, and the franchisee has to learn on their own from instruction manuals. The training period must be adequate, but in low-cost franchises it may be considered expensive. Many franchisors have set up corporate universities to train staff online. This is in addition to providing literature, sales documents and email access. Also, franchise agreements carry no guarantees or warranties and

3103-671: The Caribbean Sea and eleven in the Pacific Ocean . Five territories ( American Samoa , Guam , the Northern Mariana Islands , Puerto Rico , and the U.S. Virgin Islands ) are permanently inhabited, unincorporated territories; the other nine are small islands, atolls, and reefs with no native (or permanent) population. Of the nine, only one is classified as an incorporated territory ( Palmyra Atoll ). Two additional territories ( Bajo Nuevo Bank and Serranilla Bank ) are claimed by

3210-486: The Congress . American territories are under American sovereignty and may be treated as part of the U.S. proper in some ways and not others (i.e., territories belong to, but are not considered part of the U.S.). Unincorporated territories in particular are not considered to be integral parts of the U.S., and the U.S. Constitution applies only partially in those territories. The U.S. administers three territories in

3317-700: The Northern Mariana Islands in the North Pacific Ocean , and American Samoa in the South Pacific Ocean. American Samoa is in the Southern Hemisphere , while the other four are in the Northern Hemisphere . In 2020, their combined population was about 3.62 million, over 90% of which is accounted for by Puerto Rico alone. People born in Puerto Rico, the U.S. Virgin Islands, Guam and

CKE Restaurants - Misplaced Pages Continue

3424-601: The Pacific Ocean while Navassa Island is in the Caribbean Sea . The additional claimed territories of Bajo Nuevo Bank and Serranilla Bank are also located in the Caribbean Sea. Palmyra Atoll (formally known as the United States Territory of Palmyra Island) is the only incorporated territory, a status it has maintained since Hawaii became a state in 1959. All are uninhabited except for Midway Atoll, whose approximately 40 inhabitants (as of 2004) were employees of

3531-975: The Senate . Additionally, the Cherokee Nation has delegate-elect Kimberly Teehee , who has not been seated by Congress. Every four years, U.S. political parties nominate presidential candidates at conventions which include delegates from the territories. U.S. citizens living in the territories can vote for presidential candidates in these primary elections but not in the general election. The territorial capitals are Pago Pago (American Samoa), Hagåtña (Guam), Saipan (Northern Mariana Islands), San Juan (Puerto Rico) and Charlotte Amalie (U.S. Virgin Islands). Their governors are Lemanu Peleti Mauga ( American Samoa ), Lou Leon Guerrero ( Guam ), Ralph Torres ( Northern Mariana Islands ), Pedro Pierluisi ( Puerto Rico ) and Albert Bryan ( U.S. Virgin Islands ). Among

3638-505: The State of Oklahoma . Additionally, the Department of Alaska was unorganized from its acquisition in 1867 from Russia until organized as the District of Alaska in 1884; it was organized as Alaska Territory in 1912. Hawaii was also unorganized from the time of its annexation by the U.S. in 1898 until organized as Hawaii Territory in 1900. Regions that have been admitted as states under

3745-412: The U.S. Fish and Wildlife Service and their services provider; Palmyra Atoll, whose population varies from four to 20 Nature Conservancy and Fish and Wildlife staff and researchers; and Wake Island, which has a population of about 100 military personnel and civilian employees. The two-letter abbreviation for the islands collectively is "UM". The status of several islands is disputed. Navassa Island

3852-449: The U.S. House of Representatives . Although they cannot vote on the passage of legislation, they can introduce legislation, have floor privileges to address the house, be members of and vote in committees, are assigned offices and staff funding, and may nominate constituents from their territories to the Army , Naval , Air Force and Merchant Marine academies. As of the 118th Congress ,

3959-588: The United States Constitution in addition to the original thirteen were, most often, prior to admission, territories or parts of territories of this kind. As the United States grew, the most populous parts of the organized territory would achieve statehood. Some territories existed only a short time before becoming states, while others remained territories for decades. The shortest-lived was Alabama Territory at two years, while New Mexico Territory and Hawaii Territory both lasted more than 50 years. Of

4066-505: The lowest per capita income in the United States—it has a per capita income comparable to that of Botswana . In 2010, American Samoa's per capita income was $ 6,311. As of 2010, the Manu'a District in American Samoa had a per capita income of $ 5,441, the lowest of any county or county-equivalent in the United States. In 2018, Puerto Rico had a median household income of $ 20,166 (lower than

4173-413: The "territory" if the franchise is worked according to plan. The franchisee must be seen as an independent merchant. It must be protected by the franchisor from any trademark infringement by third parties. A franchise attorney is required to assist the franchisee during negotiations. Often the training period – the costs of which are in great part covered by the initial fee – is too short in cases where it

4280-404: The 2010s, the U.S. territories (overall) lost population. The combined population of the five inhabited territories was 4,100,594 in 2010, and 3,569,284 in 2020. The U.S. territories have high religiosity rates —American Samoa has the highest religiosity rate in the United States (99.3% religious and 98.3% Christian). The economies of the U.S. territories vary from Puerto Rico, which has

4387-452: The 50 states, 31 were once part of an organized, incorporated U.S. territory. In addition to the original 13, six subsequent states never were: Kentucky , Maine , and West Virginia were each separated from an existing state; Texas and Vermont were both sovereign states ( de facto sovereignty for Vermont, as the region was claimed by New York) when they entered the Union; and California

CKE Restaurants - Misplaced Pages Continue

4494-617: The Caribbean Sea and the Pacific Ocean, under this law; most have been abandoned. It also has acquired territories since 1856 under other circumstances, such as under the Treaty of Paris (1898) which ended the Spanish–American War. The Supreme Court considered the constitutional position of these unincorporated territories in 1922 in Balzac v. People of Porto Rico , and said the following about

4601-617: The Congress's plenary powers under the territorial clause of the Constitution's Article Four, section 3. The term unorganized was historically applied either to a newly acquired region not yet constituted as an organized incorporated territory (e.g. the Louisiana Purchase prior to the establishment of Orleans Territory and the District of Louisiana ), or to a region previously part of an organized incorporated territory left "unorganized" after part of it had been organized and achieved

4708-586: The Court said that the U.S. Constitution did not fully apply in unincorporated territories because they were inhabited by "alien races". The U.S. had no unincorporated territories (also known as overseas possessions or insular areas) until 1856. Congress enacted the Guano Islands Act that year, authorizing the president to take possession of unclaimed islands to mine guano . The U.S. has taken control of (and claimed rights on) many islands and atolls, especially in

4815-725: The English language for the document, as long as the Brazilian party knows English fluently and expressly acknowledges that fact, to avoid translation. The registration accomplishes three things: In Canada, recent legislation has mandated better disclosure and fair treatment of franchisees. The regulations also ensure their right to form associations and launch collective action, even if they signed contracts prohibiting such moves. Franchising in Canada involves 1,300 brands, 80,000 franchise units accounting for about 20% of all consumer spending . China has

4922-533: The Franchising Code of Conduct, a mandatory code of conduct concluded under the Trade Practices Act 1974 . The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement. This code requires franchisors to produce a disclosure document which must be given to a prospective franchisee at least 14 days before the franchise agreement

5029-639: The Great Plains. In 1858, the western part of the Minnesota Territory became unorganized when it was not included in the new state of Minnesota ; this area was organized in 1861 as part of the Dakota Territory . In 1890, the western half of the Indian Territory was organized as Oklahoma Territory . The eastern half remained unorganized until 1907, when it was joined with Oklahoma Territory to form

5136-553: The Northern Mariana Islands acquire U.S. citizenship by birth , and foreign nationals residing there may apply for U.S. citizenship by naturalization . People born in American Samoa acquire U.S. nationality but not U.S. citizenship by birth if they do not have a U.S. citizen parent. U.S. nationals without U.S. citizenship may hold U.S. passports and reside in any part of the United States without restriction. However, to become U.S. citizens they must apply for naturalization, like foreigners, and may only do so while residing in parts of

5243-552: The Northern Mariana Islands' four municipalities, and American Samoa's three districts and two atolls as county equivalents. The Census Bureau also counts each of the U.S. Minor Outlying Islands as county equivalents. For statistical purposes, the U.S. Census Bureau has a defined area called the "Island Areas" which consists of American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands (every major territory except Puerto Rico). The U.S. Census Bureau often treats Puerto Rico as its own entity or groups it with

5350-457: The Singer venture did not put an end to franchising. Other companies attempted franchising in one form or another after the Singer experience. For example, several decades later, General Motors established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern franchising, though, is Louis K. Liggett . In 1902, Liggett invited a group of druggists to join

5457-448: The U.S. Congress. According to 2012 data, territorial telecommunications and other infrastructure are generally inferior to that of the continental U.S. and Hawaii. Poverty rates are higher in the territories than in the states. Organized territories are lands under federal sovereignty (but not part of any state or the federal district ) which were given a measure of self-governance by Congress through an organic act subject to

SECTION 50

#1732884349557

5564-512: The U.S. Minor Outlying Islands. According to the GAO, "the United States conducts maritime law enforcement operations in and around Serranilla Bank and Bajo Nuevo [Bank] consistent with U.S. sovereignty claims." Pursuant to a series of Supreme Court rulings, Congress decides whether a territory is incorporated or unincorporated. The U.S. Constitution applies to each incorporated territory (including its local government and inhabitants) as it applies to

5671-473: The U.S. but administered by Colombia . Historically, territories were created to administer newly acquired land, and most eventually attained statehood . The most recent territories to become U.S. states were Alaska on January 3, 1959, and Hawaii on August 21, 1959. Politically and economically, the territories are underdeveloped. Residents of U.S. territories cannot vote in U.S. presidential elections , and they have only non-voting representation in

5778-572: The U.S. territories and freely associated states, except for Puerto Rico. On March 3, 1849, the last day of the 30th Congress, a bill was passed to create the U.S. Department of the Interior to take charge of the internal affairs of United States territory . The Interior Department has a wide range of responsibilities (which include the regulation of territorial governments, the basic responsibilities for public lands, and other various duties). In contrast to similarly named Departments in other countries,

5885-482: The United States . The American territories differ from the U.S. states and Indian reservations as they are not sovereign entities . In contrast, each state has a sovereignty separate from that of the federal government and each federally recognized Native American tribe possesses limited tribal sovereignty as a "dependent sovereign nation". Territories are classified by incorporation and whether they have an "organized" government through an organic act passed by

5992-571: The United States Department of the Interior is not responsible for local government or for civil administration except in the cases of Indian reservations, through the Bureau of Indian Affairs (BIA), and island dependencies administered by the Office of Insular Affairs. The U.S. has five permanently inhabited territories: Puerto Rico and the U.S. Virgin Islands in the Caribbean Sea , Guam and

6099-408: The United States other than American Samoa. Foreign nationals residing in American Samoa cannot apply for U.S. citizenship or U.S. nationality at all. Each territory is self-governing with three branches of government, including a locally elected governor and a territorial legislature. Each territory elects a non-voting member (a non-voting resident commissioner in the case of Puerto Rico) to

6206-419: The United States. The Singer Company implemented a franchising plan in the 1850s to distribute its sewing machines. The operation failed, though, because the company did not earn much money even though the machines sold well. The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts. Some failed to push Singer products, so competitors were able to outsell

6313-495: The United States. The resemblance of its jurisdiction to that of true United States courts, in offering an opportunity to nonresidents of resorting to a tribunal not subject to local influence, does not change its character as a mere territorial court. In Glidden Company v. Zdanok , the Court cited Balzac and said about courts in unincorporated territories: "Upon like considerations, Article III has been viewed as inapplicable to courts created in unincorporated territories outside

6420-587: The agreement, which leads to refunds and serious payments for damages. The Franchise Law does not distinguish between Brazilian and foreign franchisors. The National Institute of Industrial Property (INPI) is the registering authority. Indispensable documents are a Statement of Delivery (of disclosure documentation) and a Certification of Recording (INPI). The latter is necessary for payments. All sums may not be convertible into foreign currency. Certification may also mean compliance with Brazil's antitrust legislation. Parties to international franchising may decide to adopt

6527-459: The attention of a businessperson. There are also large franchises like hotels, spas and hospitals, which are discussed further under technological alliances . "No poaching" agreements are prevalent within franchises, thus limiting the ability of employers at one franchise establishment to hire employees at an affiliated franchise. Economists have characterized these agreements as a contributor to oligopsony . Three important payments are made to

SECTION 60

#1732884349557

6634-470: The business using operating manuals, and ongoing operational support including access to suppliers and employee training. A primary disadvantage to franchising is quality control, as the franchisor wants the firm's brand name to convey a message to consumers about the quality and consistency of the firm's product. They want the consumer to experience the same quality regardless of location or franchise status. This can prove to be an issue with franchising, as

6741-421: The company over 50 who had been replaced by younger employees. On April 12, 2019, Ned Lyerly was named CEO and appointed to CKE's board of directors. Lyerly had worked with CKE for over 30 years at the time of his appointment and was previously the president of CKE's international operations. On 17 March 2023 CKE announced the appointment of Max Wetzel as Chief Executive Officer, effective immediately. Mr. Wetzel

6848-464: The company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives. So, the company started repurchasing the rights it had sold. The experiment proved to be a failure. That may have been one of the first times a franchisor failed, but it was by no means the last. Colonel Harland Sanders did not initially succeed in his early efforts at franchising Kentucky Fried Chicken . Still,

6955-433: The confirmation process. On March 21, 2017, CKE announced the selection of Jason Marker as CEO for the company, succeeding Andrew Puzder. Marker, a New Zealand native, had previously served as the president of Kentucky Fried Chicken US , a subsidiary of Yum! Brands which is a direct competitor to CKE Restaurants. In June 2018, Marker was the subject of an age discrimination suit by a 58-year-old CKE marketing employee who

7062-483: The continental territories. The Court also established the doctrine of territorial incorporation, in which the Constitution applies fully to incorporated territories (such as the then-territories of Alaska and Hawaii ) and partially in the unincorporated territories of Guam , Puerto Rico , and, at the time, the Philippines (which is no longer a U.S. territory). In the 1901 Supreme Court case Downes v. Bidwell ,

7169-451: The courts in the fifty states); it became an Article III court in 1966. This means that, unlike other U.S. territories, federal judges in Puerto Rico have life tenure. Federal courts in Guam, the Northern Mariana Islands and the U.S. Virgin Islands are Article IV territorial courts . The following is a list of federal territorial courts, plus Puerto Rico's court: American Samoa does not have

7276-532: The effect of a protective tariff upon territorial regions which were not domestic states. In 2022, the United States Supreme Court in United States v. Vaello Madero held that the territorial clause of the constitution allowed wide congressional latitude in mandating "reasonable" tax and benefit schemes in Puerto Rico and the other territories, which are different from the states, but did not address

7383-645: The end of 2019, the company decided to change their advertising direction after partnering up with 72andSunny advertising agency. “Our plan moving forward is really about how to keep food at the center of what we’re doing,” said Chad Crawford, CKE’s chief brands officer. In September 2007, after more than a year of discussions with PETA , CKE Restaurants announced a new animal welfare program that would phase in cage-free eggs, and began sourcing pork from suppliers that did not use gestation crates for pregnant pigs. The plan also gave consideration to poultry suppliers that were willing to use controlled-atmosphere killing, which

7490-444: The exemption of island residents from most federal income taxes provides a "rational basis" for their exclusion from eligibility for SSI payments. American Samoa is the only U.S. territory with its own immigration system (a system separate from the United States immigration system). American Samoa also has a communal land system in which 90% of the land is communally owned; ownership is based on Samoan ancestry. Except for Guam,

7597-412: The first successful American franchising operations was started by an enterprising druggist named John S. Pemberton . In 1886, he concocted a beverage comprising sugar , molasses , spices , and cocaine . Pemberton licensed selected people to bottle and sell the drink, which was an early version of what is now known as Coca-Cola . His was one of the earliest—and most successful—franchising operations in

7704-414: The franchise as a system in which the franchisor licenses the franchisee, for a payment, the right to use a trademark or patent along with the right to distribute products or services on an exclusive or semi-exclusive basis. The provision of a "Franchise Offer Circular", or disclosure document, is mandatory before execution of agreement and is valid for all of the Brazilian territory. Failure to disclose voids

7811-416: The franchise sites, if they are owned or controlled by the franchisor. The franchisee must carefully negotiate the license and must develop a marketing or business plan with the franchisor. The fees must be fully disclosed and there should not be any hidden fees. The start-up costs and working capital must be known before the license is granted. There must be assurance that additional licensees will not crowd

7918-443: The franchisee has little or no recourse to legal intervention in the event of a dispute. Franchise contracts tend to be unilateral and favor of the franchisor, who is generally protected from lawsuits from their franchisees because of the non-negotiable contracts that franchisees are required to acknowledge, in effect, that they are buying the franchise knowing that there is risk, and that they have not been promised success or profits by

8025-416: The franchising authority are becoming increasingly strict. Some franchisors are using minor rule violations to terminate contracts and seize the franchise without any reimbursement. Franchising brings with it several advantages and disadvantages for firms looking to expand into new areas and foreign markets. The primary advantage is that the firm does not have to bear the development cost and risks of opening

8132-415: The franchisor's capital investment and liability risk. Franchising is rarely an equal partnership, especially in the typical arrangement where the franchisee is an individual, unincorporated partnership or small privately held corporation, as this will ensure the franchisor has substantial legal and/or economic advantages over the franchisee. The usual exception to this rule is when the prospective franchisee

8239-443: The franchisor's signs, logos and trademark in a prominent place. The uniforms worn by the staff of the franchisee have to be of a particular design and color. The service has to be in accordance with the pattern followed by the franchisor in the successful franchise operations. Thus, franchisees are not in full control of the business, as they would be in retailing. A service can be successful if equipment and supplies are purchased at

8346-507: The franchisor. Franchise brokers help franchisors find appropriate franchisees. There are also main 'master franchisors' who obtain the rights to sub-franchise in a territory. According to the International Franchise Association approximately 44% of all businesses in the United States are franchisee-worked. Franchising is one of the few means available to access venture capital without the need to give up control of

8453-416: The franchisor. Contracts are renewable at the sole option of the franchisor. Most franchisors require franchisees to sign agreements that mandate where and under what law any dispute would be litigated. In 2016 there were an estimated 1,120 franchise brands operating in Australia and an estimated 79,000 units operating in business format franchises, with a total brand turnover of approximately $ 146 billion and

8560-465: The governments of the U.S. territories following completion of the 2022 United States elections . Instances where local and national party affiliation differs, the national affiliation is listed second. Guam and the U.S. Virgin Islands have unicameral territorial legislatures. Each of the five major territories has its own local court system: Of the five major territories, only Puerto Rico has an Article III federal district court (i.e., equivalent to

8667-472: The highest proportion of franchises per capita in the world. Despite (or because of) the 2008–2009 recession, the total number of franchised units increased by 5.3% from 2009 to 2010. There is no separate law covering franchises, so they are covered by normal commercial law. This functions very well in New Zealand and includes law as it applies to contracts, restrictive trade practices, intellectual property, and

8774-453: The incorporated/unincorporated distinction. In a concurrence with the court's overall ruling on the propriety of the differential tax structures, one of the justices opined that it was time to overrule the incorporation doctrine, as wrongly decided and founded in racism, the dissent agreed. The U.S. Supreme Court , in its 1901–1905 Insular Cases opinions, ruled that the Constitution extended ex proprio vigore (i.e., of its own force) to

8881-437: The inhabited territories lost population in 2020. Although the territories have higher poverty rates than the mainland U.S., they have high Human Development Indexes . Four of the five territories have another official language, in addition to English. The territories do not have administrative counties . The U.S. Census Bureau counts Puerto Rico's 78 municipalities , the U.S. Virgin Islands' three main islands, all of Guam,

8988-421: The inhabited territories, Supplemental Security Income (SSI) is available only in the Northern Mariana Islands; however, in 2019 a U.S. judge ruled that the federal government's denial of SSI benefits to residents of Puerto Rico is unconstitutional. This ruling was later overturned by the U.S. Supreme Court , allowing for the exclusion of territories from such programs. In the decision, the court explained that

9095-488: The law of misleading or deceptive conduct. The Franchise Association of New Zealand introduced a self-regulatory code of practice for its members in 1996. This contains many provisions similar to those of the Australian Franchising Code of Practice legislation, although only around a third of all franchises are members of the association and therefore bound by the code. A case of fraud in 2007 perpetrated by

9202-556: The local governments and residents of a state. Incorporated territories are considered to be integral parts of the U.S., rather than possessions. In unincorporated territories, " fundamental rights apply as a matter of law, but other constitutional rights are not available", raising concerns about how citizens in these territories can influence politics in the United States . Selected constitutional provisions apply, depending on congressional acts and judicial rulings according to U.S. constitutional practice, local tradition, and law. As

9309-513: The mainland   ... and to the consular courts established by concessions from foreign countries". The judiciary determined that incorporation involves express declaration or an implication strong enough to exclude any other view, raising questions about Puerto Rico's status. In 1966, Congress made the United States District Court for the District of Puerto Rico an Article III district court . This (the only district court in

9416-561: The median household income of any state). Also in 2018, Comerío Municipality, Puerto Rico had a median household income of $ 12,812 (the lowest median household income of any populated county or county-equivalent in the U.S.) Guam has much higher incomes (Guam had a median household income of $ 48,274 in 2010.) The United States Minor Outlying Islands are small uninhabited islands, atolls , and reefs. Baker Island , Howland Island , Jarvis Island , Johnston Atoll , Kingman Reef , Midway Atoll , Palmyra Atoll , and Wake Island are in

9523-461: The most franchises in the world but the scale of their operations is relatively small. The average franchise system in China has about 45 outlets, compared to more than 540 in the United States. Together, there are 2600 brands in some 200,000 retail markets . KFC was the most significant foreign entry in 1987 and is widespread. Many franchises are in fact joint-ventures, as at their forming the franchise law

9630-514: The operation of the chain and build a distribution system for servicing it. After the brand and formula are carefully designed and properly executed, franchisors are able to sell franchises and expand rapidly across countries and continents using the capital and resources of their franchisees while reducing their own risk. There is also risk for the people buying the franchises. However, failure rates are much lower for franchise businesses than independent business startups. Franchisor rules imposed by

9737-526: The positive regulation of the franchise sector but its eventual submission to the review was in favour of the status quo of self-regulation. By the end of 2012, about 2,031 franchise brands were operating in Brazil, with approximately 93,000 locations, making it one of the largest countries in the world in terms of number of units. Around 11 percent of this total were foreign-based franchisors. The Brazilian Franchise Law (Law No. 8955 of December 15, 1994) defines

9844-453: The program's launch in 2011, Stars for Heroes raised nearly US$ 5 million by 2015. As of October 2020, there were over 3,800 franchised or company-operated restaurants in 44 US states and 43 foreign countries and US territories . The 2005 launch of a commercial of Paris Hilton sensually washing a Bentley in a bikini, marked the start of Carl's Jr. and Hardee's supermodel-centric marketing strategy. Since then Carl's Jr. ads have featured

9951-535: The purpose of ownership. It is classified as a wasting asset due to the finite term of the license. Franchise fees are on average 6.7% with an additional average marketing fee of 2%. However, not all franchise opportunities are the same and many franchise organizations are pioneering new models that challenge antiquated structures and redefine success for the organization as well as the franchisee. A franchise can be exclusive, non-exclusive or "sole and exclusive". Although franchisor revenues and profit may be listed in

10058-419: The quality control challenges. Each party to a franchise has several interests to protect. The franchisor is involved in securing protection for the trademark, controlling the business concept and securing know-how . The franchisee is obligated to carry out the services for which the trademark has been made prominent or famous. There is a great deal of standardization required. The place of service has to bear

10165-533: The requirements for statehood (e.g. a large portion of Missouri Territory became unorganized territory for several years after its southeastern section became the state of Missouri ). The Kansas–Nebraska Act of 1854 created the Kansas and Nebraska Territories, bringing organized government to the region once again. The creation of Kansas and Nebraska left the Indian Territory as the only unorganized territory in

10272-486: The states and D.C. (for example, Puerto Rico has a QuickFacts page just like the states and D.C.) Puerto Rico data is collected annually in American Community Survey estimates (just like the states), but data for the other territories is collected only once every ten years. The five major inhabited territories contain the following governments and legislatures: The following is the political party status of

10379-416: The territories are represented by Aumua Amata Radewagen (R) of American Samoa, James Moylan (R) of Guam, Gregorio Sablan (D) of Northern Mariana Islands, Jenniffer González -Colón (R-PNP) of Puerto Rico and Stacey Plaskett (D) of U.S. Virgin Islands. The District of Columbia 's delegate is Eleanor Holmes Norton (D); like the district, the territories have no vote in Congress and no representation in

10486-468: Was 92.6% Pacific Islander (including 88.9% Samoan ); Guam's population was 49.3% Pacific Islander (including 37.3% Chamorro ) and 32.2% Asian (including 26.3% Filipino ); the population of the Northern Mariana Islands was 34.9% Pacific Islander and 49.9% Asian; and the population of the U.S. Virgin Islands was 76.0% African American . In 2019, Puerto Rico's population was 98.9% Hispanic or Latino , 67.4% white, and 0.8% non-Hispanic white. Throughout

10593-706: Was consolidated with the Franklin headquarters in 2018, with most of the Anaheim office's jobs outsourced to India and the Philippines. In December 2016 Andrew Puzder was nominated by President-elect Donald Trump as US Secretary of Labor and resigned from CKE Restaurants as CEO in March 2017. Puzder ultimately withdrew from the nomination after his own admission of hiring an undocumented immigrant, failing to pay taxes and controversy from his companies' labor violations became public during

10700-434: Was later sold to Checkers in 1999. Checkers and Rally's then followed a similar regionalization concept as CKE has for its Carl's Jr. and Hardee's chains. Taco Bueno was sold in 2001 when private investment group Jacobson Partners purchased the chain for US$ 72.5 million dollars to help aid CKE Restaurants in a debt battle. In 1997, CKE acquired Hardee's from Canadian-based company Imasco . In September 2000, Andrew Puzder

10807-506: Was little growth in franchising until the early 20th century, and in whatever form franchising existed, it looked nothing like what it is today. As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than selling the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to

10914-646: Was named CEO. Prior to becoming the CEO, Puzder had been the personal attorney to the founder Karcher since 1986. In March 2002, CKE purchased Santa Barbara Restaurant Group (SBRG) and acquired direct ownership of the Green Burrito brand as part of the sale. On February 26, 2010, THL Partners agreed to acquire CKE Restaurants. However, CKE Restaurants was, instead, acquired by Columbia Lake Acquisition Holdings, an affiliate of Apollo Management VII in July 2010, after CKE accepted

11021-405: Was not explicit. For example, McDonald's is a joint venture. Pizza Hut , TGIF , Wal-mart , Starbucks followed not long thereafter. But total franchising is only 3% of retail trade, which seeks foreign franchise growth. US territories Territories of the United States are sub-national administrative divisions and dependent territories overseen by the federal government of

11128-597: Was part of unorganized land ceded to the United States by Mexico in 1848 at the end of the Mexican–American War . All of the five major U.S. territories are permanently inhabited and have locally elected territorial legislatures and executives and some degree of political autonomy . Four of the five are "organized", but American Samoa is technically "unorganized". All of the U.S. territories without permanent non-military populations are unorganized. The Office of Insular Affairs coordinates federal administration of

11235-414: Was previously Chief Operating Officer of Papa John's International, Inc., one of the largest franchisors of restaurants in the world, with over 5,000 restaurants across 48 countries and territories. CKE conducts an annual Stars for Heroes in-store fundraising campaign by soliciting donations from customers at both Hardee's and Carl's Jr. restaurants to benefit US military veterans and their families. Since

11342-479: Was terminated in 2017 after 16 years of employment and had relocated with the company to Tennessee. The suit alleged Marker "began to publicly and privately display his shock and disgust with the fact that the CKE executive and management team consisted primarily of employees over the age of 50.", with Marker reportedly saying it was "depressing" and "something had to be done" about it. The suit also listed four top officials in

11449-428: Was the most humane form of slaughter available. In July 2016 CKE Restaurants announced that it would work to ensure that its pork supply is purchased from suppliers who use group housing methods for pigs. CKE also promised to switch to 100% cage-free eggs by 2025. In December 2018 the chain became the first fast-food restaurant to serve Beyond Meat for breakfast, lunch, and dinner. Franchising Franchising

#556443