On what basis do Carls Jr. Restaurants operated by CJR and its affiliates contribute to the Media Fund?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
CJR has established and will maintain and administer a fund for working media costs ("Media Fund"). Franchisee shall contribute to the Media Fund the amount set forth in Appendix C, as subsequently modified pursuant to Section 8.F. Carl's Jr. Restaurants operated by CJR and its affiliates shall contribute to the Media Fund on the same basis as comparable franchisees.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. Restaurants operated by CJR (Carls Jr. Restaurants) and its affiliates contribute to the Media Fund on the same basis as comparable franchisees. This means that company-owned stores are expected to contribute to the advertising fund under the same rules and financial obligations as franchised locations.
This arrangement aims to ensure that there is equitable participation in funding the Media Fund, which is used for advertising and marketing efforts. By having company-owned restaurants contribute on the same basis as franchisees, Carls Jr. seeks to align the financial interests of the company with those of its franchisees in promoting the brand.
For a prospective franchisee, this indicates that Carls Jr. is committed to a fair contribution system for advertising. It suggests that the company is not exempting its own stores from the financial obligations that are placed on franchisees, which can foster trust and transparency within the franchise system. Franchisees can expect that the advertising fund is supported by both franchised and company-owned locations under the same contribution guidelines.