What vendors must a Carls franchisee use for online ordering and delivery services?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
You must also participate in any online ordering/delivery and loyalty programs that we may establish from time to time with approved vendors and you must comply with the rules and participation criteria applicable to these programs. We have currently designated OLO as the sole software platform provider for our online ordering program, Punchh as the sole software platform for our loyalty program, and have partnered with designated service providers for our delivery program. Under our online ordering/delivery programs, we require you to accept and process specific customer delivery orders and we require you to use approved third-party delivery service providers, currently Uber Eats, Door Dash, and GrubHub. We must pre-approve all delivery service providers not already designated as approved under our delivery program. In addition, we must pre-approve all sales recording processes that originate from the delivery service providers. We have the right to modify the participation criteria or discontinue these initiates at any time upon written notice to you. See also Item 11.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 61)
What This Means (2024 FDD)
According to the 2024 Carls FDD, franchisees must participate in online ordering and delivery programs that Carls establishes with approved vendors. Currently, OLO is the designated software platform provider for online ordering, and Uber Eats, Door Dash, and GrubHub are the approved third-party delivery service providers. Carls requires franchisees to accept and process customer delivery orders through these approved providers.
Carls retains the right to modify the participation criteria or discontinue these initiatives at any time with written notice to the franchisee. Additionally, Carls must pre-approve any delivery service providers not already designated as approved under the delivery program. Carls also requires pre-approval of all sales recording processes originating from the delivery service providers.
Item 22 of the FDD also states that franchisees must offer delivery services only through Carls' designated providers. Franchisees must enter into an OLO Authorized Operator Agreement with Olo, Inc. and any participation agreements required with Carls' designated delivery providers (currently Uber Eats, Door Dash, and GrubHub) on or before the opening date of the franchised restaurant. Unless Carls provides prior written consent, franchisees are prohibited from providing their own delivery service or using their employees for deliveries.