What is the range of the Opening Training Support Team Fee for a Carls franchised restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure: Current Prototype | Low Amount | High Amount | Method of Payment (2) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Fees to CJR: | |||||
| Initial Franchise Fee (3) | $25,000 | $25,000 | Lump sum | See Item 5 | CJR |
| Opening Training Support Team Fee (3) | $30,000 | $74,000 | As incurred | See Item 5 | Vendors, CJR |
| Total Fees to CJR | $55,000 | $99,000 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–36)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the Opening Training Support Team Fee ranges from $30,000 to $74,000. This fee is paid to Carls and vendors as incurred, with specific payment details outlined in Item 5 of the FDD.
This fee covers the expenses associated with the All-Star Team, which is a certified training team that participates in the pre-opening and post-opening phases of the first two Carls restaurants a franchisee opens. The fee reimburses Carls for the trainers' salaries, administrative costs, travel, lodging, and meal expenses. The training period typically involves four days before the restaurant opens and a minimum of seven days after opening, totaling up to two weeks.
For a prospective Carls franchisee, this means setting aside between $30,000 and $74,000 to cover the costs of the training team. This is in addition to other initial investment costs such as the initial franchise fee, build-out expenses, and preliminary operating expenses. Understanding the specifics of what this fee covers and how it is paid is crucial for budgeting and financial planning.
It is important to note that the Opening Training Support Team Fee is just one component of the overall initial investment, and franchisees should carefully review Item 5 of the FDD to understand the payment schedule and any other related obligations. Additionally, franchisees are responsible for the transportation, lodging, and food costs for their own employees during training, as detailed elsewhere in the FDD.