What fees are associated with the Franchise Management Training Program (FMTP) for a Carls Jr. franchise, and who is responsible for covering travel and living expenses?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
to Franchisee. Franchisee, at its expense, promptly shall take all actions deemed necessary or desirable by CJR to vest in CJR ownership of such concepts, processes or improvements.
11. TRAINING
A. Franchise Management Training Program
CJR shall provide Franchisee and those employees hired by Franchisee to fill certain designated positions the Franchise Management Training Program ("FMTP") in the operation of a Carl's Jr. Restaurant at those times and those places designated by CJR. The FMTP will include training at a Carl's Jr. Restaurant
designated by CJR and training on Star University (StarU), our online Learning Management System. Franchisee, the General Manager, a minimum of 6 Shift Leaders and any other employees hired by Franchisee to fill certain designated positions shall attend and satisfactorily complete each element of the FMTP, specified by CJR. Franchisee's Operating Principal (as defined in Section 16.G.) also shall attend and satisfactorily complete each element of the FMTP if not previously completed. CJR reserves the right to modify or waive the training required based on an individual's or Franchisee's experience.
Franchisee shall pay CJR, for each person attending the FMTP, 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's employees while attending the training. CJR reserves the right to dismiss from the training program any person whom CJR does not believe will perform acceptably in the position for which he has been hired by Franchisee and Franchisee shall provide a suitable replacement within one month of such dismissal.
B. Other Training
Prior to the Opening Date, Franchisee shall enter into the Star University License Agreement with CJR, in the form attached as Appendix I.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees are required to pay a tuition fee for each person attending the Franchise Management Training Program (FMTP). The specific amount of this tuition fee is determined by Carls Jr. and may change over time. In addition to the tuition fee, the franchisee is responsible for covering all travel, living, and other expenses incurred by their employees while they attend the FMTP.
This means that a prospective Carls Jr. franchisee needs to budget not only for the initial franchise fee and other startup costs but also for the ongoing training expenses of their staff. These training expenses include the tuition fee payable to Carls Jr. as well as the costs of transportation, accommodation, meals, and other incidentals for employees attending the FMTP. These costs can vary significantly depending on the location of the training, the duration of the program, and the number of employees requiring training.
Carls Jr. also reserves the right to require franchisees, their owners, operating principals, general managers, and other designated employees to take additional training courses beyond the FMTP. If required, the franchisee is responsible for paying tuition fees for these additional programs, as well as covering all travel, living, and other expenses incurred by employees attending the training. These additional courses may include food safety certification programs, and franchisees must maintain certificates of completion at the franchised restaurant, displaying them if required by law.
It is important for prospective franchisees to discuss these training requirements and associated costs with Carls Jr. during their due diligence process. Understanding the full scope of training obligations and expenses is essential for accurate financial planning and ensuring the successful operation of a Carls Jr. franchise.