Is a Carls franchisee required to participate in online ordering, delivery, and loyalty programs established by the franchisor?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
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. See also Item 11.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 36–40)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are required to participate in any online ordering/delivery and loyalty programs that Carls establishes with approved vendors. Currently, OLO is the designated software platform provider for online ordering, and Punchh is the software platform for the loyalty program. For delivery services, Carls has partnered with specific service providers, including Uber Eats, Door Dash, and GrubHub.
Carls requires franchisees to accept and process specific customer delivery orders through approved third-party delivery service providers. Any delivery service providers not already approved must receive pre-approval from Carls. Additionally, all sales recording processes originating from delivery service providers must also be pre-approved by Carls.
Carls retains the right to modify the participation criteria or discontinue these programs at any time by providing written notice to franchisees. This means that while franchisees must currently participate in these programs, the specifics of those programs and the vendors involved could change during the term of the franchise agreement.