What data processing equipment, computer hardware and software is a Carls Jr. franchisee required to procure and install prior to opening their restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
proved by CJR, which may include CJR. If Franchisee proposes to purchase, lease or otherwise use any fixtures, furnishings, equipment or signs which have not been approved by CJR, Franchisee shall first notify CJR in writing and shall, at its sole expense, submit to CJR upon its request, sufficient specifications, photographs, drawings and/or other information or samples for a determination as to whether those fixtures, furnishings, equipment and/or signs comply with CJR's specifications and standards. CJR will, in its sole discretion, approve or disapprove the items and notify Franchisee within 30 days after CJR receives the request, or such longer period as CJR requires.
If Franchisee builds any portion of the Franchised Restaurant outside of CJR's specifications without receiving CJR's prior written consent, CJR shall have the right to delay the opening of the Franchised Restaurant until Franchisee, at its sole expense, brings the Franchised Restaurant's development within full compliance of CJR's specifications.
E. Hardware and Software
Prior to the opening of the Franchised Restaurant, Franchisee agrees to procure and install such data processing equipment, computer hardware and software, required dedicated telephone and power lines, modems, printers and other computer-related accessory or peripheral equipment as CJR specifies in Section 13.E. of this Agreement, the Development Guide, the OPM, or otherwise. Franchisee shall provide all assistance required by CJR to bring Franchisee's computer system on-line with the computer system designated by CJR and maintained by CJR or its affiliates at the earliest possible time. Franchisee agrees that CJR shall have the free and unfettered right to retrieve any data and information from Franchisee's computers as CJR, in its sole discretion, deems appropriate, including electronically polling the daily sales, menu mix and other data of the Franchised Restaurant. All of the hardware and software specified to be installed or purchased, or activities Franchisee is to accomplish, and the delivery cost of all hardware and software, shall be at Franchisee's expense.
F. Inspection, Cooperation
During the course of construction and/or renovation, Franchisee shall (and shall cause Franchisee's architect, engineer, contractors, and subcontractors to) cooperate fully with CJR and its designees for the purpose of permitting CJR and its designees to inspect the Franchised Location and the course of construction of the Franchised Restaurant in order to determine whether construction is proceeding according to the Plans. Without limiting the generality of the foregoing, Franchisee, and Franchisee's architect, engineer, contractors and subcontractors shall: (1) supply CJR or its designees with samples of construction materials, test borings, corings, due diligence environmental studies, supplies, equipment and other material and reports, if any such tests, studies or reports indicate there may be material problems or as CJR or its designees may request; and (2) afford CJR's representatives and its designees access to the
Franchised Location and to the construction work in order to permit CJR and its designees to carry out their inspections.
**G.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, prior to opening their restaurant, a franchisee must procure and install data processing equipment, computer hardware and software, dedicated telephone and power lines, modems, and printers. They must also install other computer-related accessory or peripheral equipment as specified by Carls Jr. in the OPM (Operations Procedure Manual) or otherwise.
The franchisee is responsible for providing any assistance required by Carls Jr. to bring the franchisee's computer system online with the computer system designated and maintained by Carls Jr. or its affiliates. Carls Jr. has the right to retrieve any data and information from the franchisee's computers, including electronically polling daily sales, menu mix, and other data from the franchised restaurant. All costs associated with the hardware, software, installation, and delivery are to be borne by the franchisee.
Carls Jr. also requires franchisees to use the proprietary software program, system documentation manuals, and other proprietary materials. Franchisees may be required to execute Carls Jr.'s standard software license agreement. They must input and maintain data as prescribed by Carls Jr. in the OPM, software programs, or documentation. Franchisees are also responsible for purchasing new or upgraded software programs and system documentation manuals whenever Carls Jr. adopts them system-wide. Franchisees must comply with Point to Point Credit Encryption Standards (P2PE) and Payment Card Industry Data Security Standard (PCI DSS) and may be required to upgrade their technology to maintain compliance, at their own expense. They must also engage any vendor that Carls Jr. designates to ensure data security and compliance with P2PE and PCI DSS, attesting annually by providing a completed and signed PCI Attestation of Compliance (AOC) to Carls Jr.
Furthermore, franchisees must participate in the Carl's Jr. Gift Card Program and may need to purchase the necessary software, hardware, blank cards, and other items to sell and process gift cards as specified by Carls Jr. Franchisees are required to account for all gift card sales, redemptions, and transactions as specified in the agreement, the OPM, or other standards. They must also enter into a Participation Agreement with CJR's gift card service provider, Stored Value Systems, Inc., immediately after opening the franchised restaurant.