Are the fees uniformly imposed on all Carls Jr. franchisees who receive the disclosure document?

According to the 2025 Carls Jr. Franchise Disclosure Document, most fees are uniformly imposed on all franchisees who receive the disclosure document. Specifically, the FDD states that unless otherwise noted, all fees are imposed by and payable to Carls Jr., are non-refundable, and are uniformly imposed on franchisees who receive the disclosure document.

However, there are exceptions to this general rule. For example, the royalty fee and APO (Advertising Pool Obligation) can be reduced for franchisees who qualify for the CJR 2025 Travel Center Development Incentive Program or open a Conversion Restaurant. The amount of reduction varies depending on whether the franchisee signs a Development Agreement for ten or more Franchised Restaurants, or for more than three and up to nine Franchised Restaurants. These reductions are temporary, lasting for the first three years of operation, after which the royalty fee reverts to the standard rate, although the APO fee reduction may continue for the full 20-year term, depending on the specific agreement.

Additionally, Carls Jr. retains the right to reallocate and increase advertising contributions, although not by more than 0.5% of Gross Sales in any 12-month period, up to a maximum of 7.0% of Gross Sales. The document also states that Carls Jr. may temporarily or permanently adjust the advertising contribution for certain locations or markets due to unique or unusual circumstances. This indicates that while most fees are uniformly applied, there is some flexibility for Carls Jr. to adjust fees based on specific circumstances or agreements with individual franchisees.