What data processing equipment, computer hardware and software is Carls franchisee required to procure and install prior to opening the Franchised Restaurant?
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.
Franchisee shall: (1) use the proprietary software program, system documentation manuals and other proprietary materials now and hereafter required by CJR in connection with the operation of the Franchised Restaurant; (2) if requested by CJR, execute CJR's standard software license or similar agreement; (3) input and maintain in Franchisee's computer such data and information as CJR prescribes in the OPM, software programs, documentation or otherwise; (4) purchase new or upgraded software programs, system documentation manuals and other proprietary materials at then-current prices whenever adopted system-wide by CJR; (5) comply with Point to Point Credit Encryption Standards ("P2PE") and Payment Card Industry Data Security Standard ("PCI DSS") at all times, and if necessary to maintain such compliance, upgrade its technology, at Franchisee's expense; and (6) engage any vendor that CJR designates to ensure the security of Franchisee's data and compliance with P2PE and PCI DSS. Franchisee must maintain continuous PCI compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to CJR.
Franchisee acknowledges that computer systems are designed to accommodate a finite amount of data and terminals, and that, as these limits are reached, or as technology or software is developed in the future, CJR may, in its sole discretion, mandate that Franchisee: (A) add memory, ports and other accessories or peripheral equipment or additional, new or substitute software to the original computer system purchased by Franchisee; and (B) replace or upgrade the entire computer system with a larger system capable of assuming and discharging the computer-related tasks and functions specified by CJR. Franchisee also acknowledges that computer designs and functions change periodically and that CJR may
Franchisee must participate in the Carl's Jr. Gift Card Program or other gift card program that CJR specifies. If necessary, Franchisee must purchase the software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, which CJR may specify in writing in the OPM or otherwise.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, prior to opening a franchised restaurant, a franchisee must procure and install data processing equipment, computer hardware, and software. This includes dedicated telephone and power lines, modems, printers, and other computer-related accessories or peripheral equipment. The specific types and models will be those that CJR (Carls Jr. Restaurants) specifies in Section 13.E. of the Franchise Agreement, the Development Guide, the OPM (Operations and Procedures Manual), or as otherwise communicated.
The franchisee is responsible for ensuring their computer system can connect online with the system designated and maintained by CJR or its affiliates as quickly as possible. Carls has the right to retrieve any data and information from the franchisee's computers, including electronically polling daily sales, menu mix, and other restaurant data. All costs associated with the hardware, software, installation, and delivery are to be borne by the franchisee.
Carls also requires franchisees to use proprietary software programs, system documentation manuals, and other proprietary materials. Franchisees may be required to execute Carls's standard software license agreement. They must input and maintain the data and information that Carls prescribes in the OPM, software programs, documentation, or other instructions. Franchisees are also obligated to purchase new or upgraded software programs and system documentation manuals at the current prices whenever Carls adopts them system-wide. Franchisees must comply with Point to Point Credit Encryption Standards (P2PE) and Payment Card Industry Data Security Standard (PCI DSS) at all times, upgrading their technology as needed to maintain compliance, at their own expense, and engage any vendor that Carls designates to ensure data security and compliance with P2PE and PCI DSS. Franchisees must maintain continuous PCI compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to Carls.
Carls may mandate that franchisees add memory, ports, accessories, peripheral equipment, or new software to their original computer systems. They may also require franchisees to replace or upgrade their entire computer system with a larger one capable of handling the specified computer-related tasks and functions. All of these changes and upgrades are at the franchisee's expense. Franchisees must also participate in the Carl's Jr. Gift Card Program, purchasing the necessary software, hardware, blank cards, and other items to sell and process gift cards as specified by Carls.