What is the APO allocation for a Carls Jr. franchise during the first 12 months of operation?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
oyalty Fee:**
| Dates of Operation of the Franchised Restaurant | Royalty Fee Percentage of Gross Sales | |--------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the APO (Advertising Pool Obligation) allocation for a new franchise during its first 12 months of operation is dependent on whether the restaurant is located within a DMA (Designated Market Area) that has a regional co-op.
According to the Travel Center Development Incentive Program Addendum, the APO fee will be reduced to 2% of Gross Sales during the Initial Term of the Franchise Agreement.
Under a different incentive program, the APO to be paid by the franchisee for the franchised restaurant will be reduced by 3% of Gross Sales for Gross Sales accruing during the Franchised Restaurant's first 12 months of operation under the Franchise Agreement. The document also states that the royalty fee will be reduced by 3% of Gross Sales for Gross Sales accruing during the Franchised Restaurant's first 12 months of operation under the Franchise Agreement.
Without knowing the specific location of the franchise and whether it qualifies for any incentive programs, it's difficult to determine the exact APO allocation. A prospective franchisee should discuss these factors with Carls Jr. to understand the specific APO allocation that would apply to their restaurant.