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What is the APO allocation for a new Carls Jr. franchised restaurant during the initial term?

Carls_Jr Franchise · 2025 FDD

Answer 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)

Based on the 2025 Carls Jr. Franchise Disclosure Document, the APO (Advertising Pool Obligation) allocation for a new franchised restaurant is dependent on whether the restaurant is located within a DMA (Designated Market Area) that has a regional co-op. The document does not specify the exact APO allocation percentage or amount.

This means that the amount a new Carls Jr. franchisee will need to contribute to the advertising pool can vary. The existence of a regional co-op in the restaurant's DMA affects this allocation. A regional co-op is a cooperative of franchisees in a specific geographic area that pool their advertising funds for regional marketing efforts.

For a prospective Carls Jr. franchisee, it is important to determine whether the location they are considering is within a DMA that has a regional co-op. This will impact the overall advertising expenses and marketing strategy for the restaurant. The franchisee should discuss the APO allocation and regional co-op details with the franchisor to fully understand their financial obligations and marketing support structure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.