What kind of data capture systems is a Carls Jr. franchisee required to use?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
compliance, upgrade its technology, at Franchisee's expense; and (6) engage any vendor that CJR designates to ensure the security of Franchisee's data and compliance with P2PE and PCI DSS. Franchisee must maintain continuous PCI compliance and attest annually by providing a completed and signed PCI Attestation of Compliance (AOC) to CJR.
Franchisee acknowledges that computer systems are designed to accommodate a finite amount of data and terminals, and that, as these limits are reached, or as technology or software is developed in the future, CJR may, in its sole discretion, mandate that Franchisee: (A) add memory, ports and other
accessories or peripheral equipment or additional, new or substitute software to the original computer system purchased by Franchisee; and (B) replace or upgrade the entire computer system with a larger system capable of assuming and discharging the computer-related tasks and functions specified by CJR. Franchisee also acknowledges that computer designs and functions change periodically and that CJR may desire to make substantial modifications to its computer specifications or to require installation of entirely different systems during the term of this Agreement or upon renewal of this Agreement.
To ensure full operational efficiency and communication capability between CJR's computers and those of all Carl's Jr. Restaurants, Franchisee agrees, at its expense, to keep its computer system in good maintenance and repair and to make additions, changes, modifications, substitutions and replacements to its computer hardware, software, telephone and power lines and other computer-related facilities as directed by CJR, and on the dates and within the times specified by CJR in its sole discretion. Upon termination or expiration of this Agreement, all computer software, disks, tapes and other magnetic storage media shall be returned to CJR in good operating condition, excepting normal wear and tear.
Franchisee agrees to utilize administrative, physical, and technical safeguards designed to protect systems and data from unauthorized access, disclosure, acquisition, destruction, use, or modification that are consistent with industry standards and best practices. Franchisee further agrees to adhere to any applicable law relating to data security. In the event of a suspected or actual data breach, Franchisee will notify CJR within 24 hours of becoming aware of the actual or suspected data breach and provide timely updates and information when requested by CJR.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must maintain a computer system that is compatible with Carls Jr.'s systems. This includes keeping the system in good repair and making any necessary additions, changes, modifications, substitutions, and replacements to computer hardware, software, telephone and power lines, and other computer-related facilities as directed by Carls Jr. Franchisees are responsible for the expense of these updates. Upon termination or expiration of the franchise agreement, all computer software, disks, tapes, and other magnetic storage media must be returned to Carls Jr. in good operating condition, with allowances for normal wear and tear.
Carls Jr. franchisees must utilize administrative, physical, and technical safeguards to protect systems and data from unauthorized access, disclosure, acquisition, destruction, use, or modification, consistent with industry standards and best practices. Franchisees must also adhere to any applicable laws relating to data security. In the event of a suspected or actual data breach, the franchisee is required to notify Carls Jr. within 24 hours of becoming aware of the breach and provide timely updates and information as requested.
In addition, Carls Jr. requires franchisees to participate in the Carl's Jr. Gift Card Program or any other gift card program that Carls Jr. specifies. This includes purchasing the necessary software, hardware, blank cards, and other items needed to sell and process gift cards or stored value cards, as specified by Carls Jr. Franchisees must account for all gift card sales, redemptions, and other transactions as directed by Carls Jr. Franchisees are also required to enter into a Participation Agreement with CJR's gift card service provider, Stored Value Systems, Inc., immediately after opening their restaurant. These measures ensure data security, system compatibility, and adherence to Carls Jr.'s standards for gift card programs.