What is the initial setup fee for PAR Brink for a Carls Jr. restaurant, and to whom is it payable?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
he connectivity currently includes security appliance – Meraki MX68 w/Advanced Security License, wireless access Points – Meraki MR33, and managed switch – Meraki MS120. You are required to upgrade or update these systems and add or replace components during the term of the Franchise Agreement, and there is no contractual limitation on the frequency or cost of the obligation.
You also must use an approved software program for the Computer/POS System. You must choose either PAR Brink or Xenial Xpient (5.0 or higher) for your Computer/POS System. The cost of PAR Brink includes an initial setup fee of $2,200 per Franchised Restaurant and $576 annual license fee per Franchised Restaurant which will cover 4 terminals and 6 KDS systems, both fees payable directly to the third-party vendor. You may add additional terminals or KDS systems for $7 per month for each additional service. If you choose PAR Brink, you must also use CrunchTime as your back-office software solution. If you choose to use PAR Brink, you may sign a Software Support Agreement with CKR (the current form is attached as Exhibit G-1) and pay to CKR a software support fee of $118 for each Franchised Restaurant for each fiscal period (as defined by CKR) which will give you access to CKR's Level 1 and Level 2 Help Desk Support and also pay to CrunchTime $825 per Franchised Restaurant bi-annually (every 26 week accounting period) for swivel seat support which includes hardware and network issues, phone and internet issues and access to the CrunchTime back-office software solution. If you obtain support for PAR Brink/CrunchTime from a third party, we estimate the cost to be on average $125 per month. In addition, for PAR Brink, you must enter into a written agreement with Par Tech, Inc. ("Par Tech"), Lucas POS Systems, or POS Technical to provide on-site support. Par Tech, Lucas POS Systems, or POS
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to the 2024 FDD, Carls requires franchisees to use an approved software program for their Computer/POS system, with PAR Brink being one of the options. The initial setup fee for PAR Brink is $2,200 per franchised restaurant. This fee, along with the $576 annual license fee, is payable directly to the third-party vendor. The annual license fee covers 4 terminals and 6 KDS systems.
Carls Jr. franchisees should note that if they choose PAR Brink, they are also required to use CrunchTime as their back-office software solution. Additionally, franchisees may need to budget for additional costs if they require more than 4 terminals or 6 KDS systems, as each additional service costs $7 per month. Franchisees may also sign a Software Support Agreement with CKR for $118 per franchised restaurant for each fiscal period to access CKR's Level 1 and Level 2 Help Desk Support. They will also pay CrunchTime $825 per franchised restaurant bi-annually for swivel seat support.
It is important for prospective Carls franchisees to factor in these technology costs when evaluating the overall investment required to start and operate a franchise. The FDD also mentions the option of obtaining support for PAR Brink/CrunchTime from a third party, estimating the cost to be on average $125 per month. Franchisees must also enter into a written agreement with Par Tech, Inc., Lucas POS Systems, or POS Technical for on-site support, and these providers will bill them directly for their services.