When do the Software Support Fees for a Carls franchise begin to be paid?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
scribed on Exhibit A.
1.6 "Software Support Fees" means that fees payable by Franchisee to CKR for the Support Services.
ARTICLE 2
SUPPORT SERVICES
- 2.1 Support Services. CKR will provide the Support Services to Franchisee subject to the terms and conditions of this Agreement. CKR, in its sole discretion, may subcontract with third party vendor(s) to provide the Support Services directly to Franchisee. Franchisee may request Support Services by calling CKR's Help Desk at the access number set forth in Exhibit A, as modified from time to time
- 2.2 Covered Equipment. In order to facilitate the Support Services, Franchisee agrees to operate the Covered Equipment in accordance with the CKR's and the manufacturer's instructions. Franchisee shall enter into an agreement with Par Tech, Inc. ("Par Tech") or Retail Technology Group, Inc. ("RTG") to provide onsite and telephonic maintenance services to the Covered Equipment. Par Tech or RTG
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees are required to pay Software Support Fees starting at the end of the first fiscal period following the date of the Software Support Agreement. These fees are paid to CKR, the software licensor, via ACH payment, with the specific amounts and frequency detailed in Exhibit A of the agreement.
Carls retains the right to increase these Software Support Fees, but they must provide the franchisee with 60 days' prior written notice before implementing any changes. This advance notice allows franchisees time to adjust their financial planning accordingly.
In addition to the ongoing Software Support Fees, Carls franchisees must also purchase and participate in mandatory initial training programs for the PAR Brink and Crunch Time software. This initial training comes at a one-time fee of $1,250, which CKR will bill to the franchisee upon the execution of the Software Support Agreement. This upfront cost ensures that franchisees are properly trained on the software systems from the outset, with additional training programs potentially available at CKR's discretion for additional fees.