What are the responsibilities of the franchisee regarding travel and living expenses for themselves and their employees while attending training for a Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
length of time needed to open the Franchised Restaurant usually include your ability to obtain adequate financing, weather, local requirements and procedures for necessary permits and zoning, shortages or delayed installation of equipment, signs and fixtures and special circumstances affecting construction in a particular area, none of which are within our control.
Training
We may require those individuals who will have a 10% or greater interest in the franchisee entity to attend a 10-Day Operations Overview before we will commit to enter into any other agreement with you. The 10-Day Operations Overview will be conducted at those locations specified by us. As described in Item 5, we may charge a fee for this program, and you will be required to pay all travel, living and other expenses incurred in attending this program. The persons participating in the 10-Day Operations Overview will be required to execute the Preliminary Agreement.
We currently provide, at no charge for you, your Operating Principal (if not previously trained), your General Manager and 6 other employees who you have hired as Shift Leaders, the FMTP, provided the training takes place within 2 years of your signing the Franchise Agreement, in the operation of a Carl's Jr. Restaurant at those times and places designated by us. We reserve, however, the right to modify or waive the training required based on individual's or your experience. As described in Item 5, a fee is charged to provide the FMTP to additional individuals. The FMTP will include in-restaurant training at a Carl's Jr. Restaurant designated by us, classroom instruction and training at a designated training facility in Anaheim, CA or Franklin, TN, and online training.
In addition, we also provide you electronic access to our E-Learning management system called Star University. Star University is a web-based personal learning and training environment for the administration, tracking and reporting of learning programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to the 2024 FDD, franchisees are generally responsible for covering all travel, living, and other expenses incurred by themselves and their employees while attending training programs for a Carls franchise. This applies to the initial 10-Day Operations Overview, which individuals with a 10% or greater interest in the franchisee entity may be required to attend.
Carls also provides the FMTP (Franchise Management Training Program) to the Operating Principal, General Manager, and up to 6 Shift Leaders at no charge, provided the training occurs within 2 years of signing the Franchise Agreement. However, franchisees are responsible for travel and living expenses even for this initial training. If Carls offers additional training programs, franchisees may be required to pay a tuition fee, in addition to covering all travel, living, and other expenses for their employees attending the training.
Furthermore, if a franchisee does not currently operate a Franchised Restaurant or has not opened a new one in the last 2 years, their Operating Principal must attend another franchisee's new restaurant opening no more than 12 months before their own restaurant opens. The franchisee would be responsible for the travel and living expenses associated with this requirement. Franchisees should budget accordingly for these potentially significant training-related costs.