What must a Carls franchisee do before adding or modifying any menu item?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee has a suggestion for a new menu item or for a change to an authorized menu item or Franchisee desires to participate in a test market program, Franchisee shall provide CJR written notice prior to implementation.
Franchisee shall not add or modify any menu item or participate in a test market program without first having obtained CJR's prior written approval.
Franchisee shall purchase any additional equipment and smallwares as CJR deems reasonably necessary in connection with new menu items.
If CJR requires Franchisee to begin offering a new menu item which requires the purchase of additional equipment, a reasonable period of time, as determined in the sole discretion of CJR, shall be provided for the financing, purchase and installation of any such equipment before such new menu items must be offered for sale at the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, a franchisee must first obtain prior written approval from CJR before adding or modifying any menu item. If a franchisee has a suggestion for a new menu item or a change to an existing one, or if they want to participate in a test market program, they must provide written notice to CJR before implementing it.
This requirement ensures that all Carls restaurants maintain consistency in their offerings and adhere to the brand's standards. It also allows Carls to control the quality and uniformity of the menu across all franchise locations. This is a common practice in franchising, as it helps protect the brand's reputation and ensures customer expectations are met.
Furthermore, if Carls approves a new menu item that requires additional equipment, the franchisee is responsible for purchasing it. However, Carls will provide a reasonable timeframe for financing, purchasing, and installing the necessary equipment before the franchisee is required to offer the new menu item. This protects the franchisee from having to immediately invest in new equipment without adequate time to prepare.