How much is the Carls franchisee required to contribute to the Media Fund, and where can this amount be found?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
CJR has established and will maintain and administer a fund for working media costs ("Media Fund"). Franchisee shall contribute to the Media Fund the amount set forth in Appendix C, as subsequently modified pursuant to Section 8.F. Carl's Jr. Restaurants operated by CJR and its affiliates shall contribute to the Media Fund on the same basis as comparable franchisees.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, franchisees are required to contribute to the Media Fund. The specific amount that a Carls franchisee must contribute to the Media Fund is detailed in Appendix C of the FDD. This amount may be modified by Carls, as outlined in Section 8.F of the agreement.
The Media Fund is used by Carls for working media costs. Carls has full discretion over the advertising, marketing, social media, and public relations programs financed by the Media Fund. This includes decisions about creative concepts, materials, endorsements, and the placement and allocation of advertising and marketing materials.
Carls franchisees are obligated to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Media Fund. Carls may also furnish franchisees with marketing, advertising, and promotional materials, charging the cost of production plus any related shipping, handling, and storage fees. It is important for prospective franchisees to carefully review Appendix C and Section 8.F to understand the exact contribution amount and how it may change over time.