Is a Carls franchisee required to use proprietary software programs and system documentation manuals provided by the franchisor?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
You must obtain and install data processing equipment, computer hardware, required dedicated telephone and power lines, high speed Internet connections, modems, printers and other computer related accessory or peripheral equipment as we may specify in the OPM or otherwise in writing ("Computer/POS System"), as further explained in Item 11. Current approved vendors for technology components of the Computer/POS System are PAR Tech, Inc., CrunchTime, QSR Automations, Xenial Xpient (4.0 or higher) and Meraki. Currently, you must use either the PAR Brink (and CrunchTime) POS software or the Xenial Xpient (4.0 or higher) POS software in operating your Franchised Restaurant. You must utilize any proprietary software program, system documentation manuals and other proprietary materials provided by us in connection with the operation of the Franchised Restaurant. When we provide proprietary software, we may require that you execute one or more standard form software license or similar agreements and input and maintain in your computer the software programs, data and information as we prescribe. You must purchase from us, at prices and upon terms that we determine, the proprietary software programs, manuals and/or computer-related materials whenever we decide to use new or upgraded programs, manuals and/or materials throughout the Carl's Jr. System. Except as described in Items 6 and 11, there are currently no payments to be made to us in connection with these items. You must comply with the Payment Card Industry Data Security Standard ("PCI-DSS") at all times and engage any vendor that we may designate to ensure the security of your data and compliance with PCI-DSS. You must maintain continuous PCI compliance and must attest this to us annually by providing us with a completed and signed PCI Attestation of Compliance.
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 use proprietary software programs and system documentation manuals. Specifically, franchisees must utilize any proprietary software program, system documentation manuals, and other proprietary materials provided by Carls in connection with the operation of the franchised restaurant.
Carls may also require franchisees to execute standard form software license or similar agreements and input and maintain specific software programs, data, and information into their computers as prescribed by Carls. Franchisees must purchase proprietary software programs, manuals, and computer-related materials from Carls at prices and terms determined by Carls whenever new or upgraded versions are introduced throughout the Carl's Jr. system.
Currently, Carls requires franchisees to use either the PAR Brink (and CrunchTime) POS software or the Xenial Xpient (4.0 or higher) POS software in operating their Franchised Restaurant. Franchisees are also required to comply with the Payment Card Industry Data Security Standard (PCI-DSS) at all times and engage any vendor that Carls may designate to ensure data security and PCI-DSS compliance. Franchisees must maintain continuous PCI compliance and attest to this annually by providing a completed and signed PCI Attestation of Compliance.