What does the Digital Tech Fee for Carls cover?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ny rentals or other charges payable to Landlord.
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- Landlord consents to Tenant's collateral assignment of the Lease to CJR or its designee, granting CJR the option, but not the obligation, to assume the Lease and/or any or all rights therein.
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- If Tenant fails to exercise, for any reason, any term renewal or term extension right under the
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Digital Tech Fee is currently $120 per 4-week accounting fiscal period. This fee provides franchisees with access to Online Ordering (OLO) and data services.
Carls franchisees should note that consistent uptime of the digital ordering system can impact the amount of the Digital Ordering fees. If the system's monthly uptime percentage falls below certain thresholds, franchisees may be eligible for a service credit, which is applied as a reduction in the next month's Digital Ordering fees. For example, an uptime of 99.9% to 99.5% results in a 5% reduction, while an uptime below 95.9% leads to a 30% reduction.
However, these service credits are not applicable if downtime is caused by specific issues, such as problems with the franchisee's internet service provider, POS system failures, third-party software bugs, or force majeure events. Additionally, scheduled maintenance performed during specific hours (3:00 a.m. to 6:00 a.m. Eastern Time) with prior notice, or brief downtimes (up to five minutes) between 4:00 a.m. and 6:00 a.m. without notice, do not qualify for service credits. Therefore, franchisees need to maintain their systems and connectivity to ensure optimal uptime and avoid potential disruptions that could impact their eligibility for service credits.