What are the requirements for a Multi-Unit Development Manager for a Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
If you are developing Franchised Restaurants in multiple geographic markets, for all markets in which the Development Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Development Manager. The Multi-Unit Development Manager will be under the supervision of the Development Principal. The Multi-Unit Development Manager must devote full time and best efforts to supervising the development of the Franchised Restaurants and other restaurants that are to be operated by you that are franchised by us or our affiliates in a geographic market, successfully complete our development training, the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Development Manager must maintain his/her primary residence within a reasonable driving distance of the Development Territory, unless waived in writing by us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 59–61)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, a Multi-Unit Development Manager is required if the Development Principal fails to meet Carls's requirements when developing franchised restaurants in multiple geographic markets. The Multi-Unit Development Manager operates under the supervision of the Development Principal.
The Multi-Unit Development Manager must devote their full time and best efforts to supervising the development of Carls franchised restaurants, as well as other restaurants operated by the franchisee that are franchised by Carls or its affiliates within a specific geographic market. The manager must successfully complete Carls's development training, the FMTP (Franchise Management Training Program), and any additional training that Carls requires. Carls must also approve the Multi-Unit Development Manager.
Furthermore, the Multi-Unit Development Manager is generally required to maintain their primary residence within a reasonable driving distance of the Development Territory. However, Carls may waive this requirement in writing at its discretion. These stipulations ensure that someone is actively and locally overseeing the development and operation of multiple Carls locations when the Development Principal cannot fulfill these responsibilities.