Does the Carls Franchise Agreement include a Weekly Royalty Fee appendix?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
GUARANTEE AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
APPENDIX A - FRANCHISE INFORMATION
APPENDIX B - WEEKLY ROYALTY FEE
APPENDIX C - FRANCHISEE'S ADVERTISING AND PROMOTION OBLIGATION
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, the Franchise Agreement does include an appendix specifically addressing the weekly royalty fee. Appendix B of the Carl's Jr. Restaurant Franchise Agreement is titled "WEEKLY ROYALTY FEE." This appendix is referenced in Section 6.B of the Franchise Agreement, which discusses the royalty fee itself.
The inclusion of this appendix means that prospective Carls franchisees can expect to find specific details regarding the calculation and payment of the weekly royalty fee clearly outlined in this section of the franchise agreement. This provides transparency and allows franchisees to understand their ongoing financial obligations to Carls.
It is typical for franchise agreements to include appendices that detail specific fees, obligations, or other important terms. This helps to organize the agreement and make it easier for franchisees to find the information they need. Franchisees should carefully review Appendix B, in conjunction with Section 6.B, to fully understand how the weekly royalty fee is determined and when it is due.