Is a Carls franchisee required to execute CJR's standard software license agreement if requested?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall: (1) use the proprietary software program, system documentation manuals and other proprietary materials now and hereafter required by CJR in connection with the operation of the Franchised Restaurant; (2) if requested by CJR, execute CJR's standard software license or similar agreement; (3) input and maintain in Franchisee's computer such data and information as CJR prescribes in the OPM, software programs, documentation or otherwise; (4) purchase new or upgraded software programs, system documentation manuals and other proprietary materials at then-current prices whenever adopted system-wide by CJR; (5) comply with Point to Point Credit Encryption Standards ("P2PE") and Payment Card Industry Data Security Standard ("PCI DSS") at all times, and if necessary to maintain such compliance, upgrade its technology, at Franchisee's expense; and (6) engage any vendor that CJR designates to ensure the security of Franchisee's data and compliance with P2PE and PCI DSS. Franchisee must maintain continuous PCI compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to CJR.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are required to execute CJR's standard software license agreement if requested by CJR. Franchisees must also use the proprietary software program, system documentation manuals, and other proprietary materials required by CJR for operating the franchised restaurant.
Carls franchisees are also responsible for inputting and maintaining the data and information that CJR prescribes in the OPM (Operation Procedures Manual), software programs, documentation, or otherwise, into their computer systems. They must purchase new or upgraded software programs, system documentation manuals, and other proprietary materials at then-current prices whenever Carls adopts them system-wide.
Furthermore, franchisees must comply with Point to Point Credit Encryption Standards (P2PE) and Payment Card Industry Data Security Standard (PCI DSS) at all times, upgrading their technology at their own expense if necessary to maintain compliance. They are also required to engage any vendor that Carls designates to ensure data security and compliance with P2PE and PCI DSS, and must maintain continuous PCI compliance, attesting annually by providing a completed and signed PCI Attestation of Compliance (AOC) to CJR.