When will CJR pay the Cash Incentive to the franchisee for a Carls Jr. 'Conversion Restaurant'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
d Restaurant's second 12 months of operation under the Franchise Agreement; and (C) 1% of Gross Sales for Gross Sales accruing during the Franchised Restaurant's third 12 months of operation under the Franchise Agreement. Thereafter and during the remaining Initial Term of the Franchise Agreement the royalty fee will revert to 4% of Gross Sales and the APO will revert to 5.5% of Gross Sales. The royalty fee and APO to be paid pursuant to thi
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, if a franchised restaurant qualifies as a 'Conversion Restaurant' and opens within 12 months of signing the Franchise Agreement, Carls Jr. will provide a $50,000 cash incentive. This incentive aims to encourage franchisees to convert existing locations into Carls Jr. restaurants.
Carls Jr. will pay the franchisee the $50,000 cash incentive 30 days after the franchised restaurant opens for business. This timeline provides a clear expectation for when the franchisee can anticipate receiving the incentive, allowing for better financial planning.
It is important to note that this incentive is specifically for 'Conversion Restaurants' as determined by Carls Jr., and the restaurant must open within the specified timeframe. Additionally, the franchisee acknowledges that by participating in this program, they may not be entitled to other incentives offered by Carls Jr. This ensures clarity and prevents franchisees from stacking multiple incentives for the same location.