Who bears the expense for all hardware and software specified to be installed or purchased for a Carls franchise, including delivery costs?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to the opening of the Franchised Restaurant, Franchisee agrees to procure and install such data processing equipment, computer hardware and software, required dedicated telephone and power lines, modems, printers and other computer-related accessory or peripheral equipment as CJR specifies in Section 13.E. of this Agreement, the Development Guide, the OPM, or otherwise. Franchisee shall provide all assistance required by CJR to bring Franchisee's computer system on-line with the computer system designated by CJR and maintained by CJR or its affiliates at the earliest possible time. Franchisee agrees that CJR shall have the free and unfettered right to retrieve any data and information from Franchisee's computers as CJR, in its sole discretion, deems appropriate, including electronically polling the daily sales, menu mix and other data of the Franchised Restaurant. All of the hardware and software specified to be installed or purchased, or activities Franchisee is to accomplish, and the delivery cost of all hardware and software, shall be at Franchisee's expense.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 FDD, the franchisee is responsible for covering the costs of all hardware and software that Carls specifies for installation or purchase, including delivery expenses. This encompasses data processing equipment, computer hardware and software, dedicated telephone and power lines, modems, printers, and other related accessories.
This means a prospective Carls franchisee must budget for these technology-related expenses as part of their initial investment. Furthermore, the franchisee must provide any assistance Carls requires to integrate the franchisee's computer system with Carls's system. Carls retains the right to access data and information from the franchisee's computers, including sales and menu mix data.
Moreover, the franchisee is obligated to maintain and repair their computer systems at their own expense, making any additions, changes, or replacements as directed by Carls. Upon termination or expiration of the franchise agreement, all computer software and storage media must be returned to Carls in good operating condition, normal wear and tear excepted. This ongoing financial responsibility for technology upgrades and maintenance is a significant factor for franchisees to consider.