When are Carl's Jr. collection costs and expenses due?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Collection Costs and Expenses | CJR’s costs and expenses | On demand, if required | These costs and expenses include, but are not limited to, costs and commissions due a collection agency, reasonable attorneys’ fees, costs incurred in creating or replicating reports demonstrating Gross Sales of the Franchised Restaurant, court costs, expert witness fees, discovery costs and reasonable attorneys’ fees and costs on appeal, together with interest charges on all of the foregoing. |
Source: Item 6 — Other Fees (FDD pages 26–31)
What This Means (2024 FDD)
According to Carl's 2024 Franchise Disclosure Document, collection costs and expenses are due on demand, if required. These costs may arise if Carl's incurs expenses to collect payments or enforce the franchise agreement.
The collection costs and expenses that Carl's may charge include costs and commissions due to a collection agency, reasonable attorneys’ fees, costs incurred in creating or replicating reports demonstrating Gross Sales of the Franchised Restaurant, court costs, expert witness fees, discovery costs and reasonable attorneys’ fees and costs on appeal, together with interest charges on all of the foregoing.
This means that if a franchisee fails to make required payments or otherwise breaches the franchise agreement, they could be responsible not only for the original amount owed but also for any additional costs Carl's incurs in attempting to recover the debt. The "on demand" payment term means Carl's can request immediate payment of these costs, which could put a strain on the franchisee's finances. Franchisees should ensure they understand the terms of the franchise agreement and maintain open communication with Carl's to avoid potential disputes and collection costs.