What expenses can Carls Jr. charge a franchisee for restaurant opening support?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisee's reasonable request, or at CJR's discretion, CJR shall provide assistance in opening training for the first or second new Franchised Restaurant in a new franchisee's portfolio, and in training Franchisee's employees as CJR deems appropriate in light of Franchisee's needs and the availability of CJR personnel. CJR has the right to charge Franchisee all reasonable expenses incurred in support of the restaurant opening, including but not limited to any travel, hotel, meals, employee wages, materials and supplies (as determined by CJR).
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. has the right to charge franchisees for reasonable expenses incurred while supporting the opening of a restaurant. These expenses may include travel, hotel stays, meals, employee wages, materials, and supplies. The FDD specifies that these expenses will be determined by Carls Jr.
This means that as a franchisee, you may incur additional costs for the support provided by Carls Jr. during the opening of your restaurant. These costs are not fixed and can vary depending on the extent of support needed and the expenses incurred by Carls Jr. personnel during the opening process. It is important to factor in these potential expenses when budgeting for the launch of your Carls Jr. franchise.
It is advisable for prospective franchisees to discuss with Carls Jr. the typical range of these opening support expenses and the factors that can influence them. Understanding how these costs are calculated and what services they cover will help in better financial planning and management during the initial phase of operating the franchise.