For Carls franchises, what are 'Delivery Requirements' in the context of the Olo platform, and who establishes them?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Delivery Requirements" shall mean the requirements established by Customer or Operator in the Platform relating to the selection of the Delivery Service Providers who may be Available Delivery Service Providers for Operator.
- "Platform" means the system operated by Olo that allows customers to provide Delivery Requirements and place requests with Olo to deliver Products to End Users and facilitates through those Delivery Service Providers who meet the Delivery Requirements, including any associated application program interfaces and technology and any enhancements or modifications thereto.
2.2 Selection of Available Delivery Service Providers. Olo will select the Selected Delivery Service Providers based on the Delivery Requirements and the Profiles of Available Delivery Service Providers in each Delivery Area. Notwithstanding the foregoing, to the extent that Customer or Operator does not provide any parameters for Olo to choose an Available Delivery Service Provider, one shall be selected automatically by Olo. Customer or Operator may change its Delivery Requirements at any time in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, 'Delivery Requirements' within the Olo platform are the criteria that the franchisee (referred to as 'Customer or Operator') sets to determine which Delivery Service Providers are eligible to deliver orders for their Carls location. These requirements are established by the franchisee within the Olo platform. Olo then uses these requirements to select an appropriate 'Available Delivery Service Provider' to fulfill a given order.
Carls franchisees have the autonomy to adjust their Delivery Requirements at any time, giving them control over the selection process. If the franchisee does not specify any parameters, Olo will automatically select a delivery service provider. This flexibility allows franchisees to tailor their delivery service based on factors such as delivery area, pricing, or specific service levels offered by different providers.
This system ensures that Carls franchisees can influence the quality and reliability of their delivery services by setting specific criteria for delivery providers. However, franchisees should be aware that Olo ultimately selects the provider based on these requirements and the profiles of available providers. Franchisees should carefully consider the implications of their Delivery Requirements, as overly restrictive criteria could limit the availability of delivery services and potentially impact order fulfillment times and customer satisfaction.