What are the franchisee's financial obligations regarding the Carls Franchise Management Training Program (FMTP)?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
complete the required modernization within the time reasonably specified by CJR in its written notice.
- D. CJR has the right, in its sole discretion, to waive, defer or permit variations from the standards of the System or the applicable agreement to any franchisee or prospective franchisee based on the peculiarities of a particular site, existing building configuration or circumstance, density of population, business potential, trade area population or any other condition or circumstance. CJR shall have the right, in its sole discretion, to deny any such request CJR believes would not be in the best interests of the System.
- E. If Franchisee develops any new concepts, processes or improvements relating to the System, whether or not pursuant to a CJR authorized test, Franchisee promptly shall notify CJR and provide CJR with all information regarding the new concept, process or improvement, all of which shall become the property of CJR and its affiliates and which may be incorporated into the System without any payment to Franchisee. Franchisee, at its expense, promptly shall take all actions deemed necessary or desirable by CJR to vest in CJR ownership of such concepts, processes or improvements.
11. TRAINING
A. Franchise Management Training Program
CJR shall provide Franchisee and those employees hired by Franchisee to fill certain designated positions the Franchise Management Training Program ("FMTP") in the operation of a Carl's Jr. Restaurant at those times and those places designated by CJR. The FMTP will include classroom instruction and
training at CJR's designated training facilities and/or at a Carl's Jr. Restaurant designated by CJR. Franchisee, the General Manager, a minimum of 6 Shift Leaders and any other employees hired by Franchisee to fill certain designated positions shall attend and satisfactorily complete each element of the FMTP, specified by CJR. Franchisee's Operating Principal (as defined in Section 16.G.) also shall attend and satisfactorily complete each element of the FMTP if not previously completed. CJR reserves the right to modify or waive the training required based on an individual's or Franchisee's experience.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are responsible for specific costs related to the Franchise Management Training Program (FMTP). Carls requires the franchisee, the General Manager, a minimum of 6 Shift Leaders, and any other designated employees to attend and complete the FMTP. If the franchisee's Operating Principal has not previously completed the FMTP, they must also attend and complete it.
Carls requires franchisees to pay a tuition fee for each person attending the FMTP, with the fee amount determined and adjusted by Carls periodically. In addition to tuition, the franchisee must cover all travel, living, and other expenses incurred by their employees while they attend the training program. Carls retains the right to dismiss any person from the training program if they believe the individual will not perform acceptably in their designated position. If an employee is dismissed, the franchisee is obligated to provide a suitable replacement within one month.
Furthermore, Carls also has the right to require franchisees, their owners, the Operating Principal, the General Manager, and other designated employees to take and successfully complete additional training courses beyond the FMTP. Carls reserves the right to charge tuition fees for these additional training programs, and the franchisee is responsible for covering all travel, living, and other expenses for employees attending these additional courses.