What fees might a Carls Jr. franchisee incur when seeking approval for a new supplier?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to purchase any goods or materials (that you are not required to purchase from CJR, an affiliate of CJR or a designated supplier) from a supplier that we have not previously approved, you must submit to us a written request for such approval, or you must request that the supplier do so. We have the right to require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities and that such information, specifications and samples as we reasonably designate be delivered to us and/or to an independent, certified laboratory designated by us for testing prior to granting approval. You must pay a fee not to exceed the reasonable cost of the inspection and the actual cost of the test. In addition to product testing, a facility audit may be required. We will notify you within 60 days as to whether you are authorized to purchase such products from that supplier. In the event we tentatively approve a request for an alternative supplier, you must submit a check for $1,500 to us as a deposit against the cost we incur in inspecting the supplier's facility. You will be responsible for additional costs and expenses associated with the inspection of the facility, which must occur before final approval. Approval of a supplier also may be subject to the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints) or other criteria (including the number of suppliers already approved) and may be temporary pending further evaluation of such supplier. We may periodically require that the testing and/or facility audit be performed again at your expense to ensure continued compliance with our specifications and facility standards. We will advise you in writing if we revoke any approvals.
We may charge non-approved suppliers reasonable testing and/or inspection fees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee may incur several fees when seeking approval for a new supplier. If a franchisee wants to purchase goods or materials from a supplier not already approved by Carls Jr., they must submit a written request for approval. Carls Jr. has the right to require an inspection of the supplier's facilities by their representatives.
As a condition of approval, Carls Jr. may require that the supplier's facilities be inspected and that samples and specifications be delivered to them or an independent, certified laboratory for testing. The franchisee must pay a fee not exceeding the reasonable cost of the inspection and the actual cost of the testing. In the event Carls Jr. tentatively approves a request for an alternative supplier, the franchisee must submit a $1,500 deposit to cover the inspection costs.
The franchisee is responsible for any additional costs associated with the facility inspection, which must occur before final approval. Carls Jr. will notify the franchisee within 60 days whether they are authorized to purchase from the proposed supplier. Additionally, Carls Jr. may periodically require that the testing and/or facility audit be performed again at the franchisee's expense to ensure continued compliance with their specifications and facility standards.
Carls Jr. also retains the right to charge non-approved suppliers reasonable testing and/or inspection fees directly. Approval of a supplier may also be subject to criteria such as delivery frequency, reporting capabilities, and service standards, and may be temporary pending further evaluation.