What are the "Software Support Fees" for a Carls franchise, and what do these fees cover?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Software Support Fees. Commencing at the end of the first Fiscal Period following the date of this Agreement, Franchisee shall pay to CKR, by ACH payment, the Software Support Fees in the amounts and frequency set forth on Exhibit A. CKR shall have the right, upon 60 days' prior written notice to Franchisee, to increase the Support Services Fees.
- 3.2 Initial Training Support for PAR Brink and Crunch Time Software. In order to facilitate the support services, Franchisee agrees to purchase and participate in mandatory initial training programs for use of the PAR Brink and Crunch Time software. The scope of the training programs for each software is set forth on Exhibit C to this Agreement. The cost for the training programs shall be a one-time fee of $1,250
which will be billed to the Franchisee by CKR upon execution of this Agreement. Additional training programs may be made available to Franchisee, at CKR's discretion, for additional training fees.
L1/L2 Help Desk Support $118 per Franchised Restaurant per Fiscal Period (i.e., CKR's 4-
week accounting period)
Hosting Fee $6.50 per Fiscal Period (4-week accounting period), plus a
CrunchTime hosting fee of $1.50 per Fiscal Period
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 FDD, Carls franchisees are required to pay software support fees to CKR, the parent company, for technical assistance with the PAR Brink point-of-sale system and the Crunch Time back-office system. These fees cover help desk support and hosting.
The L1/L2 Help Desk Support costs $118 per franchised restaurant per fiscal period, which is defined as CKR's 4-week accounting period. In addition to the help desk support, there is a Hosting Fee of $6.50 per fiscal period, along with a CrunchTime hosting fee of $1.50 per fiscal period.
Carls franchisees must also purchase initial training programs for the PAR Brink and Crunch Time software at a one-time fee of $1,250. CKR can increase the Software Support Fees with 60 days' prior written notice to the franchisee. Franchisees are also responsible for maintaining specific Next Generation Connectivity equipment and contracting with a CKR-approved managed service provider to ensure they can receive the support services.