What products and services must a Carls franchisee offer for sale?
Carls Franchise · 2024 FDDAnswer 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.
You must meet and maintain the highest applicable health standard and rating. You must operate the Franchised Restaurant in strict conformity with the methods, standards and specifications that we prescribe in the OPM or otherwise in writing.
You must offer for sale and sell at the Franchised Restaurant all and only those products and services as are expressly authorized by us in the OPM or otherwise in writing. We may restrict sales of menu items to certain time periods during the day. We have the right to change the menu items, ingredients, products, materials, supplies and paper goods or the standards and specifications of each, and there are no limits on our ability to do so. You must promptly comply with the new requirements. We do not limit the customers to whom you may sell goods or services. You must offer to customers online ordering and delivery services pursuant to online ordering/delivery programs that we may from time to time establish with approved vendors and comply with our specifications regarding same.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, franchisees must offer for sale all products and services expressly authorized by Carls in its Operations Procedures Manual (OPM) or in writing. Carls has the right to change menu items, ingredients, products, materials, supplies, and paper goods, and franchisees must comply with these changes. Carls does not limit the customers to whom franchisees may sell goods or services.
Carls franchisees must offer online ordering and delivery services through programs established by Carls with approved vendors, adhering to Carls' specifications. Currently, OLO is the designated software platform provider for online ordering, Punchh for the loyalty program, and Uber Eats, Door Dash, and GrubHub are approved third-party delivery service providers. Franchisees are required to accept and process specific customer delivery orders through these approved providers.
Carls franchisees must also participate in the Carls Jr. Gift Card Program, selling and honoring gift cards according to Carls' written standards. They must account for all gift card sales and transactions as specified by Carls. Additionally, franchisees are required to participate in customer satisfaction programs, such as secret shoppers and customer surveys, to verify customer satisfaction and compliance with operational standards. Franchisees will be responsible for reimbursing Carls for all costs related to these programs.