What are the requirements for a Multi-Unit Manager designated by a Carls franchisee, including training and residency?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
aintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us. The Operating Principal will be required to successfully complete the FMTP and any additional training required by us. If you operate restaurants in multiple markets that are franchised by us or our affiliates, an individual meeting the above qualifications will serve as the Operating Principal in at least one market.
If you operate restaurants that are franchised by us or our affiliates in multiple geographic markets, for all markets in which the Operating Principal fails to satisfy our requirements, you must designate and retain an individual to serve as Multi-Unit Manager. The Multi-Unit Manager will be under the supervision of the Operating Principal. The Multi-Unit Manager must devote full time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by us or our affiliates) operated by you in the same geographic market, successfully complete the FMTP and any additional training required by us, and be approved by us. In addition, the Multi-Unit Manager must maintain his/her primary residence within a reasonable driving distance of the Franchised Restaurant, unless waived in writing by us.
The Development Principal must own at least a 10% equity ownership interest in you, or in your general partner if you are a limited partnership, unless modified by us in our sole discretion. (This requirement does not apply if you were a publicly-held entity or a wholly-owned subsidiary of a publiclyheld entity as of the date of the first franchise-related agreement between you and us.) The Development Principal must be a member of the Continuity Group and have full control over the day-to-day development of the Franchised Restaurants.
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 franchisee operating in multiple geographic markets may need to designate a Multi-Unit Manager if the Operating Principal fails to meet Carls's requirements. This manager operates under the supervision of the Operating Principal and must dedicate their full time and best efforts to overseeing the Franchised Restaurant and other Carls restaurants the franchisee operates within the same geographic market. Carls must approve the Multi-Unit Manager.
The Multi-Unit Manager is required to successfully complete the FMTP (Franchise Management Training Program) and any additional training that Carls deems necessary. Furthermore, the Multi-Unit Manager must maintain a primary residence within a reasonable driving distance of the Franchised Restaurant. However, Carls may waive the residency requirement in writing at their discretion.
For franchisees developing restaurants in multiple geographic markets, a Multi-Unit Development Manager may be required if the Development Principal fails to satisfy Carls's requirements. This 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 the franchisee that are franchised by Carls or its affiliates in a geographic market, successfully complete Carls's development training, the FMTP and any additional training required by Carls, and be approved by Carls. 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 Carls.