Is there a fee for the initial FMTP training program for a Carls franchise, and if so, for whom is it free?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
eement with you. The 10-Day Operations Overview will be conducted at those locations specified by us. As described in Item 5, we may charge a fee for this program, and you will be required to pay all travel, living and other expenses incurred in attending this program. The persons participating in the 10-Day Operations Overview will be required to execute the Preliminary Agreement.
We currently provide, at no charge for you, your Operating Principal (if not previously trained), your General Manager and 6 other employees who you have hired as Shift Leaders, the FMTP, provided the training takes place within 2 years of your signing the Franchise Agreement, in the operation of a Carl's Jr. Restaurant at those times and places designated by us. We reserve, however, the right to modify or waive the training required based on individual's or your experience. As described in Item 5, a fee is charged to provide the FMTP to additional individuals. The FMTP will include in-restaurant training at a Carl's Jr. Restaurant designated by us, classroom instruction and training at a designated training facility in Anaheim, CA or Franklin, TN, and online training.
In addition, we also provide you electronic access to our E-Learning management system called Star University. Star University is a web-based personal learning and training environment for the administration, tracking and reporting of learning programs. Currently, the fee associated with the use of this program is $14 per fiscal period (as defined by us, currently a 4-week accounting period), but we reserve the right to increase the fee in the future. In addition, you will be required to sign the Star University License Agreement (the current form is attached as Appendix I to the Franchise Agreement).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 41–54)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the FMTP (Franchise Management Training Program) is provided at no charge for specific individuals under certain conditions. Specifically, Carls provides the FMTP at no charge to the Operating Principal (if not previously trained), the General Manager, and up to 6 other employees hired as Shift Leaders. This free training is contingent on the training taking place within 2 years of signing the Franchise Agreement.
However, Carls reserves the right to modify or waive the required training based on an individual's or the franchisee's experience. If the franchisee requires FMTP for additional individuals beyond those initially covered, a fee will be charged as described in Item 5 of the FDD.
It's important to note that while the FMTP itself may be provided at no charge for the specified personnel, franchisees are responsible for covering all travel, living, and other expenses incurred by themselves and their employees while attending the training. Additionally, Carls reserves the right to require franchisees to pay tuition fees for any additional training programs beyond the FMTP, as established by Carls from time to time.