Can Carls charge me a fee for developing, reviewing, and approving my web site?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not use our Proprietary Marks in any Internet domain name or e-mail address, in the operation of any Internet web site or on a social media platform including any social networking site, Facebook, Twitter, Instagram, Pinterest, YouTube, Snapchat, Vine, blogs, podcasts and wikis or other future social media platforms and/or technological avenues (collectively, "Social Media"; not an exclusive list and term applies to any social networking website, mobile application, blog or microblog, public and private message boards, comment sections, etc.) without our prior written consent. We may grant or withhold our consent in our sole discretion and may condition our consent on such requirements as we deem appropriate, including, among other things, that you obtain our written approval of: (A) any and all Internet domain names and home page addresses related to the Franchised Restaurant; (B) the proposed form and content of any web site related to the Franchised Restaurant; (C) your use of any hyperlinks or other links; (D) your use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has an ownership interest; and (E) any proposed modification of your web site. We may designate the form and content of your web site and/or require that any such web site be hosted by us or a third party whom we designate, using one or more web sites that we own and/or control. We may charge you a fee for developing, reviewing and approving your web site and/or for hosting the web site.
Source: Item 13 — TRADEMARKS (FDD pages 56–58)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Carls retains significant control over franchisees' websites and social media presence. Carls requires franchisees to obtain written approval for various aspects of their web presence, including domain names, website content, hyperlinks, and modifications.
Carls maintains the right to designate the form and content of a franchisee's website and can require that it be hosted by Carls or a third party they designate. This gives Carls considerable control over the franchisee's online representation of the brand.
Importantly, Carls explicitly states that they "may charge you a fee for developing, reviewing and approving your web site and/or for hosting the web site." This means that as a prospective Carls franchisee, you should anticipate potential costs associated with setting up and maintaining your website, as Carls has the discretion to charge fees for these services. It would be prudent to inquire about the typical range of these fees and the specific services they cover during your due diligence process.