What specific data processing equipment, computer hardware, and software does CJR specify that a Carls franchisee must procure and install?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to the opening of the Franchised Restaurant, Franchisee agrees to procure and install such data processing equipment, computer hardware and software, required dedicated telephone and power lines, modems, printers and other computer-related accessory or peripheral equipment as CJR specifies in Section 13.E. of this Agreement, the Development Guide, the OPM, or otherwise. Franchisee shall provide all assistance required by CJR to bring Franchisee's computer system on-line with the computer system designated by CJR and maintained by CJR or its affiliates at the earliest possible time. Franchisee agrees that CJR shall have the free and unfettered right to retrieve any data and information from Franchisee's computers as CJR, in its sole discretion, deems appropriate, including electronically polling the daily sales, menu mix and other data of the Franchised Restaurant. All of the hardware and software specified to be installed or purchased, or activities Franchisee is to accomplish, and the delivery cost of all hardware and software, shall be at Franchisee's expense.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, franchisees must acquire and install specific data processing equipment, computer hardware, and software. The precise specifications are detailed in Section 13.E of the Franchise Agreement, the Development Guide, and the Operations Procedures Manual (OPM), or as otherwise specified by CJR. This includes the hardware, software, dedicated telephone and power lines, high speed Internet connections, modems, printers, and other related equipment necessary to connect to Carls's designated computer system. Franchisees are responsible for all costs associated with these acquisitions and installations.
Carls retains the right to access data from the franchisee's computer systems, including daily sales and menu mix information. Franchisees must maintain their computer systems in good condition and make any additions, changes, or replacements as directed by Carls. Upon termination or expiration of the franchise agreement, all computer software and storage media must be returned to Carls in good operating condition, normal wear and tear excepted. Franchisees must also implement security measures to protect data and comply with data security laws, notifying Carls within 24 hours of any suspected data breach.
Furthermore, franchisees are required to participate in the Carl's Jr. Gift Card Program and may need to purchase related software, hardware, and blank cards as specified by Carls. They must also comply with Point to Point Credit Encryption Standards (P2PE) and Payment Card Industry Data Security Standard (PCI DSS), upgrading their technology as needed to maintain compliance. Carls may also designate specific vendors to ensure data security and PCI DSS compliance. Franchisees must maintain continuous PCI compliance and provide an annual Attestation of Compliance (AOC) to Carls.
Carls retains the right to modify computer specifications or require entirely different systems during the franchise term or upon renewal. Franchisees acknowledge that the computer systems have finite limits and may need upgrades or replacements as mandated by Carls. The Operations Procedures Manual (OPM) contains critical information for operating a Carls Jr. Restaurant, and franchisees must purchase any necessary equipment to receive these communications, such as a DVD player, computer system, Internet service, and a dedicated phone line.