What is the source of the data used to calculate the Average Net Sentiment for Carls restaurants?

According to Carls's 2024 Franchise Disclosure Document, the Average Net Sentiment is calculated by a third-party vendor, Black Box Intelligence. Black Box Intelligence specializes in decoding customer sentiment by delving into unstructured interaction data. The Average Net Sentiment score can range from -100 to +100, and the document indicates that the Average Net Sentiment presented in Table 1 reflects the score for restaurants included in each of the Top 1/3, Mid 1/3, and Bottom 1/3 groups during FY24.

This means that Carls relies on an outside company to analyze customer feedback and determine the overall sentiment towards its franchised locations. This sentiment is then used to categorize restaurants into performance groups. For a potential franchisee, this highlights the importance of online reputation management, as it directly impacts how a restaurant is perceived and ranked.

It's important to note that Carls does not independently verify the data provided by Black Box Intelligence. Franchisees should understand how these sentiment scores are calculated and what actions they can take to improve their restaurant's online reputation. Monitoring and actively managing online reviews and comments could lead to a higher Average Net Sentiment score, potentially improving the restaurant's standing within the Carls system.