Is the Carls franchisee required to reimburse CJR for costs associated with customer satisfaction programs?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Carl's Jr. Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as CJR may require. CJR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse CJR for all costs related to the Franchised Restaurant associated with any and all of these programs.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are required to participate in customer satisfaction programs to maintain the brand's goodwill and system standards. These programs may include secret shoppers, customer surveys, or other Quality Assurance (QA) measures.
Carls will share the results of these programs with the franchisee, specifically as they pertain to the franchised restaurant. This feedback is intended to help franchisees identify areas for improvement and ensure compliance with Carls's operational standards.
The franchisee is responsible for reimbursing Carls for all costs associated with these customer satisfaction programs related to their specific franchised restaurant. This means that franchisees should budget for these expenses, as they are a mandatory part of maintaining the Carls brand standards and assessing operational compliance.