factual

What expenses does the Opening Training Support Fee for a Carls Jr. franchise reimburse?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

raphic area in which the Franchised Restaurant will be located.

  • (2) Costs paid to CJR are not refundable. Whether any costs paid to third parties are refundable will vary based on the practice in the area where your Franchised Restaurant is located.
  • (3) For your first 2 Franchised Restaurants, you are required to have an All-Star Team, a certified training team, participate in the pre-opening and post-opening of the Franchised Restaurants. You will be responsible to pay us the Opening Training Support Fee, which will reimburse us for the All-Star Team's trainers' salaries, administrative fees, travel, lodging and meal expenses for the time they teach and train at your Franchised Restaurants, which is usually four days before opening and a minimum of seven days after opening, for a total of up to two weeks. We will waive the $15,000 Initial Franchise Fee for any Franchised Restaurant that opens 6 months prior to the contractual opening date for the Franchised Restaurant as set forth in the Development Agreement
  • (4) You must purchase certain items of furniture, fixtures and equipment, the point of sale system, and smallwares.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 35–37)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are required to pay an Opening Training Support Fee for their first two franchised restaurants. This fee reimburses Carls Jr. for expenses related to the All-Star Team's trainers. These expenses include the trainers' salaries, administrative fees, travel, lodging, and meal expenses. The All-Star Team provides training and support at the franchisee's location, typically for four days before the restaurant opens and a minimum of seven days after opening, totaling up to two weeks.

The estimated cost for the Opening Training Support Fee ranges from $32,000 to $72,000, as detailed in Item 7 of the FDD. This fee is paid as incurred and is remitted to both vendors and Carls Jr. directly. It is important to note that franchisees are also responsible for covering the travel, living, and other expenses for themselves and their employees during the training period, which are separate from the Opening Training Support Fee.

Prospective franchisees should carefully consider these costs when evaluating the overall investment required to open a Carls Jr. franchise. Understanding what the Opening Training Support Fee covers, and what additional training-related expenses the franchisee is responsible for, is crucial for accurate financial planning. Additionally, franchisees should inquire about the specific criteria and process for the All-Star Team's training program to fully understand the support provided and its associated costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.