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