What is the current Digital Tech Fee for a Carls franchise per fiscal period?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Software Support Fee (PAR Brink and CrunchTime) | Currently, $118 per Franchised Restaurant per fiscal period (4 week accounting period) (for L/1 and L/2 Help Desk Support for PAR Brink & CrunchTime); in addition, $825 per Franchised Restaurant bi annually (every 26 week accounting period) for back office support fee payable to CrunchTime. Additionally, there is an optional BizIQ cost, per user: Power User $3,500, Analyst $1,800, and Consumer $600. If you use Brink, you must also pay the Brink Hosting Fee of $6.50 per fiscal period (4 | As incurred | $118 of this amount is paid to our affiliate, CKR, and the amount or related fees are subject to change. Applicable only if you choose to use the PAR Brink/CrunchTime service (described in Item 11). You are not required to use this software. If you use PAR Brink you are also required to use CrunchTime for back office support and pay to Crunchtime $825 per Franchised Restaurant bi-annually (every 26 week accounting period) for back office support fee. PAR Brink and CrunchTime require the payment of additional license fees as explained in Item 11. The breakdown of this support fee is: RTSC Help Desk – Cognizant - $88 RTSC Help Desk – Kaseya - $14 Binary Defense - $13 Sentinel 1 - $3 The BizIQ cost is billed annually by BizIQ and paid directly to BizIQ. The CrunchTime and Brink Hosting Fees are billed by us and paid to our affiliate, CKR, to reimburse CKR for these hosting fees billed to CKR by CrunchTime and Brink. |
Source: Item 6 — Other Fees (FDD pages 26–31)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the brand refers to the digital tech fee as a Software Support Fee. If a franchisee chooses to use PAR Brink and CrunchTime software, the Software Support Fee is currently $118 per franchised restaurant per fiscal period (4 week accounting period) for L/1 and L/2 Help Desk Support for PAR Brink & CrunchTime.
In addition to the $118 fee, there is also a $825 bi-annual fee (every 26 week accounting period) for back office support payable to CrunchTime. The FDD also notes that there is an optional BizIQ cost, per user: Power User $3,500, Analyst $1,800, and Consumer $600. The BizIQ cost is billed annually by BizIQ and paid directly to BizIQ.
The $118 is paid to Carls's affiliate, CKR, and the amount or related fees are subject to change. If franchisees use PAR Brink they are also required to use CrunchTime for back office support and pay to Crunchtime $825 per Franchised Restaurant bi-annually (every 26 week accounting period) for back office support fee. The FDD breaks down the $118 support fee as follows: RTSC Help Desk – Cognizant - $88, RTSC Help Desk – Kaseya - $14, Binary Defense - $13, and Sentinel 1 - $3. There is also a Brink Hosting Fee of $6.50 per fiscal period (4 week accounting period).
It is important to note that using PAR Brink/CrunchTime service is optional. However, if a franchisee chooses to use PAR Brink, they are also required to use CrunchTime for back office support and pay the associated fees. Prospective franchisees should carefully consider these costs and whether the benefits of the software justify the expense. They should also inquire about any potential changes to these fees in the future, as they are subject to change.