What section of the Carls Franchise Agreement outlines the Franchisee's Advertising and Promotion Obligation?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
8. ADVERTISING AND PROMOTION
A. Contributions/Expenditures by Franchisee
During the term of this Agreement, Franchisee shall have a weekly advertising and promotion obligation ("APO") in the amount set forth in Section 6.C. and Appendix C. Following written notice to Franchisee, CJR may modify the amount and allocation of the APO subject to the provisions of Section 8.F. Franchisee shall pay, at the same time and in the same manner as the royalty fee, that portion of the APO as CJR may direct to the Production Fund in accordance with Section 8.B. The remainder of the APO shall be paid, at the same time and in the same manner as the royalty fee, to the Media Fund in accordance with Section 8.C.
APPENDIX C
FRANCHISEE'S ADVERTISING AND PROMOTION OBLIGATION
Franchisee's APO under Section 8 of the Franchise Agreement shall be as set forth below, unless and until modified by CJR as provided in Section 8:
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, Section 8 of the Franchise Agreement, titled "Advertising and Promotion," and Appendix C, titled "Franchisee's Advertising and Promotion Obligation," outline the franchisee's advertising and promotion obligations. Section 8 details the franchisee's weekly advertising and promotion obligation (APO), contributions to the Production Fund, and the allocation of funds between the Production Fund and the Media Fund. Appendix C further specifies the franchisee's APO as defined under Section 8, subject to modifications by Carls.
Section 8A states that the franchisee will have a weekly advertising and promotion obligation (APO) in the amount set forth in Section 6.C. and Appendix C. Carls may modify the amount and allocation of the APO following written notice to the franchisee, subject to the provisions of Section 8.F. The franchisee must pay a portion of the APO, as directed by Carls, to the Production Fund, with the remainder paid to the Media Fund.
Appendix C specifies that the franchisee's APO under Section 8 of the Franchise Agreement will be as set forth in the appendix, unless modified by Carls as provided in Section 8. This section clarifies that the specific details of the franchisee's advertising and promotion obligations are further elaborated in Appendix C and are subject to change by Carls as per the terms outlined in Section 8 of the agreement.