Besides the initial franchise fee, what other fee must a Carls Jr. franchisee pay before opening?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
enewed as provided for this Agreement. The Interim Period does not create any new franchise rights and upon expiration of the final Interim Period; provided Franchisee does not renew the rights licensed in this Agreement as specified in this Agreement, Franchisee will be bound by all post-term obligations as provided in this Agreement.
3. LEASE TERMS
If Franchisee has not previously provided CJR with a fully-signed copy of its lease or sublease for the Franchised Location, or proof that Franchisee has purchased the real estate for the Franchised Location, Franchisee shall immediately upon execution of this Agreement provide CJR with a copy of the fully-signed lease or sublease, together with the executed Carl's Jr. Lease Addendum in the form attached as Appendix G. For purposes of this Agreement, the effective date of the lease or sublease, or the closing date of the purchase of the real property, shall be the "Property Control Date".
4. CONSTRUCTION OF THE FRANCHISED RESTAURANT
A. Development Training
Franchisee shall complete, to CJR's satisfaction, any development training required by CJR. Franchisee shall pay CJR, for each person attending development training, a tuition fee as established by CJR from time to time. Franchisee also may attend optional development training as offered by CJR from time to time, subject to payment of a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee and its employees while attending development training and optional development training.
B. Restaurant Development
Franchisee assumes all cost, liability and expense for developing, constructing and equipping the Franchised Restaurant. CJR will furnish to Franchisee prototypical plans and specifications for a Carl's Jr. Restaurant, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings, storefront and color scheme. It shall be Franchisee's responsibility to have prepared all required construction plans and specifications to suit the shape and dimensions of the Franchised Location and Franchisee must ensure that these plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and restrictions. Franchisee shall use only registered architects, registered engineers, and professional and licensed contractors.
Franchisee shall submit proposed construction plans, specifications and drawings for the Franchised Restaurant ("Plans") to CJR and shall, upon CJR's request, submit all revised or "as built" Plans during the course of such construction. CJR will review the Plans and notify Franchisee within 30 days after CJR receives the Plans, or such longer period as CJR requires, whether the Plans are approved. CJR's approval shall not be unreasonably withheld. Once CJR has approved the Plans and Franchisee has signed
each page of the Plans acknowledging the approval and Franchisee's obligations for compliance, no substantial change shall be made to the Plans without the prior approval of CJR, which shall not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must pay several fees before opening their restaurant in addition to the initial franchise fee. Franchisees must pay tuition fees for each person attending required or optional development training. These fees are established by Carls Jr. and franchisees are also responsible for covering all travel, living, and other expenses incurred while attending these training programs.
Carls Jr. franchisees are responsible for all costs associated with developing, constructing, and equipping their franchised restaurant. This includes expenses for construction plans and specifications, ensuring compliance with local ordinances and building codes, and using registered architects, engineers, and licensed contractors. Franchisees must also obtain and maintain all necessary permits and licenses, such as building, utility, sign, health, sanitation, and business permits, before the opening date.
Furthermore, franchisees are required to purchase an opening inventory of only authorized and approved products, materials, and supplies for the restaurant. They must also acquire approved fixtures, furnishings, equipment, and signs from suppliers designated or approved by Carls Jr. Additionally, franchisees must participate in the Carls Jr. Gift Card Program and may need to purchase the necessary software, hardware, and blank cards to sell and process gift cards. Finally, franchisees are required to offer delivery services through Carls Jr.'s designated providers and must enter into agreements with these providers, such as Uber Eats, Door Dash, and GrubHub, before the restaurant's opening date.