factual

When do Carls Jr. franchisees begin paying Software Support Fees to CKR?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 3.1 Software Support Fees. Commencing at the end of the first Fiscal Period following the date of this Agreement, Franchisee shall pay to CKR, by ACH payment, the Software Support Fees in the amounts and frequency set forth on Exhibit A. CKR shall have the right, upon 60 days' prior written notice to Franchisee, to increase the Support Services Fees.

Source: Item 23 — RECEIPTS (FDD pages 76–364)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must begin paying Software Support Fees to CKR (CKE Restaurants Holdings, Inc.) at the end of the first Fiscal Period following the date of the Software Support Agreement. The fees are paid via ACH payment, with the specific amounts and frequency detailed in Exhibit A of the agreement. A Fiscal Period is defined as a four-week accounting period as defined by CKR. CKR retains the right to increase these fees, providing the franchisee with 60 days' prior written notice.

In addition to the ongoing Software Support Fees, Carls Jr. franchisees must also participate in mandatory initial training programs for the PAR Brink and Crunch Time software. This training is a one-time fee of $1,250, which CKR will bill upon the execution of the Software Support Agreement. Additional training programs may be available at CKR's discretion, incurring further fees for the franchisee.

It's important to note that the Software Support Fees cover telephonic help desk Level 1 and 2 maintenance services provided by CKR for the Licensed Products and Covered Equipment, as described in Exhibit A. The franchisee is also responsible for maintaining the Covered Equipment according to CKR's and the manufacturer's instructions and must enter into agreements with Par Tech, Inc. or Retail Technology Group, Inc. for onsite and telephonic maintenance services, billed directly to the franchisee. The franchisee is also responsible for taxes related to the software licenses and any interest on late payments to CKR.

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.