Must a Carls franchisee offer online ordering and delivery services?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
You must offer to customers online ordering and delivery services pursuant to online ordering/delivery programs that we may from time to time establish with approved vendors and comply with our specifications regarding same.
You must also participate in any online ordering/delivery and loyalty programs that we may establish from time to time with approved vendors and you must comply with the rules and participation criteria applicable to these programs. We have currently designated OLO as the sole software platform provider for our online ordering program, Punchh as the sole software platform for our loyalty program, and have partnered with designated service providers for our delivery program. Under our online ordering/delivery programs, we require you to accept and process specific customer delivery orders and we require you to use approved third-party delivery service providers, currently Uber Eats, Door Dash, and GrubHub. We must pre-approve all delivery service providers not already designated as approved under our delivery program. In addition, we must pre-approve all sales recording processes that originate from the delivery service providers. We have the right to modify the participation criteria or discontinue these initiates at any time upon written notice to you.
CJR requires Franchisee to offer delivery services only through CJR's designated providers to customers in Franchisee's market. On or before the Opening Date of the Franchised Restaurant opens, Franchisee agrees to enter into the OLO Authorized Operator Agreement with Olo, Inc. Franchisee further agrees to enter into any participation agreement required with CJR's designated delivery providers at the same time (currently, the approved delivery providers are Uber Eats, Door Dash, and GrubHub). Unless CJR provides its prior written consent, Franchisee agrees that it will not provide its own delivery service or use its employees to deliver orders to Franchisee's customers.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are required to offer online ordering and delivery services. Carls requires franchisees to participate in any online ordering/delivery programs that they may establish with approved vendors and comply with their specifications.
Carls has designated OLO as the software platform provider for their online ordering program, Punchh as the software platform for their loyalty program, and has partnered with designated service providers for their delivery program. Franchisees are required to accept and process specific customer delivery orders and use approved third-party delivery service providers, which currently include Uber Eats, Door Dash, and GrubHub.
Carls also requires franchisees to offer delivery services only through their designated providers to customers in the franchisee's market. Franchisees must enter into the OLO Authorized Operator Agreement with Olo, Inc. and any participation agreement required with Carls's designated delivery providers. Unless Carls provides prior written consent, franchisees are prohibited from providing their own delivery service or using their employees to deliver orders to customers. This ensures consistency and control over the delivery process, but it also means franchisees must adhere to Carls's chosen platforms and providers.