What is the annual license fee for PAR Brink for a Carls Jr. restaurant, and what does it cover?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
he connectivity currently includes security appliance – Meraki MX68 w/Advanced Security License, wireless access Points – Meraki MR33, and managed switch – Meraki MS120. You are required to upgrade or update these systems and add or replace components during the term of the Franchise Agreement, and there is no contractual limitation on the frequency or cost of the obligation.
You also must use an approved software program for the Computer/POS System. You must choose either PAR Brink or Xenial Xpient (5.0 or higher) for your Computer/POS System. The cost of PAR Brink includes an initial setup fee of $2,200 per Franchised Restaurant and $576 annual license fee per Franchised Restaurant which will cover 4 terminals and 6 KDS systems, both fees payable directly to the third-party vendor. You may add additional terminals or KDS systems for $7 per month for each additional service. If you choose PAR Brink, you must also use CrunchTime as your back-office software solution. If you choose to use PAR Brink, you may sign a Software Support Agreement with CKR (the current form is attached as Exhibit G-1) and pay to CKR a software support fee of $118 for each Franchised Restaurant for each fiscal period (as defined by CKR) which will give you access to CKR's Level 1 and Level 2 Help Desk Support and also pay to CrunchTime $825 per Franchised Restaurant bi-annually (every 26 week accounting period) for swivel seat support which includes hardware and network issues, phone and internet issues and access to the CrunchTime back-office software solution. If you obtain support for PAR Brink/CrunchTime from a third party, we estimate the cost to be on average $125 per month. In addition, for PAR Brink, you must enter into a written agreement with Par Tech, Inc. ("Par Tech"), Lucas POS Systems, or POS Technical to provide on-site support. Par Tech, Lucas POS Systems, or POS
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to the 2024 FDD, Carls Jr. franchisees who choose PAR Brink as their Computer/POS System must pay an annual license fee of $576 per franchised restaurant. This fee covers 4 terminals and 6 KDS systems. The fee is payable directly to the third-party vendor.
Carls Jr. franchisees can add additional terminals or KDS systems for $7 per month for each additional service. If a franchisee chooses PAR Brink, they must also use CrunchTime as their back-office software solution.
In addition to the annual license fee, franchisees who choose PAR Brink may sign a Software Support Agreement with CKR and pay a software support fee of $118 per franchised restaurant for each fiscal period to CKR. This provides access to CKR's Level 1 and Level 2 Help Desk Support. Franchisees will also pay CrunchTime $825 per franchised restaurant bi-annually for swivel seat support, which includes hardware and network issues, phone and internet issues, and access to the CrunchTime back-office software solution. Alternatively, franchisees can obtain support for PAR Brink/CrunchTime from a third party, estimated to cost an average of $125 per month. Franchisees must also enter into a written agreement with Par Tech, Inc., Lucas POS Systems, or POS Technical for on-site support, which will be billed directly to the franchisee.