factual

How should a Carls franchisee staff each shift?

Carls Franchise · 2024 FDD

Answer from 2024 FDD Document

You must use the Franchised Restaurant solely for the operation of the Carl's Jr. Restaurant and must maintain sufficient inventories, adequately staff each shift with qualified employees and continuously operate the Franchised Restaurant as we specify in the OPM or otherwise in writing.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)

What This Means (2024 FDD)

According to the 2024 Carls FDD, franchisees must adequately staff each shift with qualified employees. The FDD emphasizes the importance of maintaining sufficient inventories and continuously operating the restaurant at maximum capacity and efficiency. This is further reinforced by the requirement to operate the restaurant solely as a Carl's Jr. and in strict conformity with the methods, standards, and specifications outlined in the Operations Procedure Manual (OPM) or in writing from Carls.

Carls provides training programs to ensure that franchisees and their employees are well-prepared. Specifically, the Franchise Management Training Program (FMTP) is provided at no charge for the Operating Principal (if not previously trained), the General Manager, and six Shift Leaders, provided the training occurs within two years of signing the Franchise Agreement. This FMTP includes in-restaurant training, classroom instruction at designated facilities in Anaheim, CA, or Franklin, TN, and online training. Franchisees may incur tuition fees for additional individuals attending the FMTP and are responsible for all travel and living expenses for their employees during training.

In addition to the FMTP, Carls offers electronic access to Star University, a web-based learning management system, for a fee of $14 per fiscal period (currently a 4-week accounting period). This system aids in the administration, tracking, and reporting of learning programs and is a required training tool. Furthermore, the General Manager and two Shift Leaders must attend an additional two weeks of Shift Control training. Carls also reserves the right to require franchisees and their employees to complete other training courses beyond the FMTP, with franchisees responsible for tuition fees and associated expenses.

Prospective franchisees should note that Carls retains the right to dismiss individuals from training programs if they are deemed unlikely to perform acceptably, requiring the franchisee to provide a suitable replacement within one month. Moreover, if a franchisee does not currently operate a Carls restaurant or hasn't opened a new one in the past two years, their Operating Principal must attend another franchisee's new restaurant opening within 12 months before their own restaurant opens. These comprehensive training requirements and staffing obligations are designed to ensure consistent quality and operational efficiency across all Carls locations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.