Does the Franchise Agreement for Carls include an appendix specifying the franchisee's advertising and promotion obligations?

According to the 2024 FDD, the Carls's Franchise Agreement includes an appendix that specifies the franchisee's advertising and promotion obligations. Specifically, Appendix C of the Franchise Agreement outlines the franchisee's advertising and promotion obligations (APO) as detailed in Section 8 of the agreement. The franchisee's APO is set forth in Appendix C, but Carls retains the right to modify the amount and allocation of the APO, as provided in Section 8.

Carls requires franchisees to contribute to two funds: the Production Fund and the Media Fund. The amount that the franchisee must contribute to the Production Fund is detailed in Appendix C and may be modified by Carls. The Production Fund is used for the creation and development of advertising, marketing, social media, public relations, research, gift card and loyalty programs, activities, and materials that Carls deems appropriate.

The franchisee's advertising and promotion obligations are further detailed in Section 8 of the Franchise Agreement. Franchisees must adhere to Carls's standards, specifications, and procedures related to advertising and promotional programs. Carls also has the right to suspend contributions to and operations of each fund, terminate any fund with 30 days' written notice, and defer or waive advertising fees under certain circumstances.