Karcher Tells Workers His Side of Story : Fast food: The Carl’s Jr. founder’s memo sought to answer accusations against him by the company president in their battle over who will control the corporation.

Carl’s Jr. founder Carl N. Karcher told his side of the story to company employees Friday in his increasingly public battle to regain control of the restaurant chain.

In a memo distributed at Carl Karcher Enterprises’ Anaheim headquarters, the 76-year-old chairman denied that “concealed financial deals” were driving a controversial marketing plan that he made public two weeks ago.

Karcher is threatening a proxy battle to regain control of the company he created 52 years ago. He went public with the feud shortly after board members rejected his plan to test market Green Burrito’s Mexican-style food products at a handful of Carl’s Jr. restaurants.

Company officials did not respond Friday to requests for comment on the memo to employees, which followed company President Donald E. Doyle’s accusation earlier this week that the proposal might bolster the founder’s economic fortunes, but had little of value for the company or its shareholders.

Karcher denied that his plan to test market the Green Burrito products was tied to “agreements or understandings” with William Theisen, Green Burrito’s principal shareholder, that could solve Karcher’s financial problems.

Karcher also told employees that the company is “going in the wrong direction” and “must address . . . declining sales and we must do so dramatically.” Karcher expressed support for Doyle’s cost-cutting campaign, but added that “you can only cut costs so long. Sometimes you have to test dramatically new concepts to prosper.”

Karcher Enterprises Wednesday said that its second-quarter net income fell to $2.1 million from $3.2 million a year earlier on revenue of $108.2 million, down from $119.9 million.

The memo also confirmed that Karcher wants the corporation to offer Theisen a seat on its board of directors, “whether or not we as directors decide to proceed” with the Green Burrito test. Karcher described Theisen as “a voice of proven entrepreneurial experience and success in the restaurant industry.”

Theisen, chairman of Anaheim-based GB Foods, the parent company of Green Burrito restaurants, earlier founded and subsequently sold the Godfather’s Pizza chain. Theisen now wants to expand the Green Burrito chain, in part by offering the company’s products through other restaurant companies.

Karcher, who owns 34% of Carl Karcher Enterprises’ outstanding shares, is at odds with four independent directors over the company’s future direction.

The board and Karcher also differ on the details of an offer that Theisen has made to the company. Doyle said that Theisen’s proposal included a $6-million loan to help the company founder out of his financial difficulties. But Karcher’s memo to employees said that while Theisen “has indicated a desire to purchase $6-million worth” of his company stock that there are no strings attached to the proposed joint marketing plan with Green Burrito.