What is the maximum amount Carls Jr. will reimburse a franchisee for grand opening advertising expenditures?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
als. Franchisee agrees that the Media Fund may be used to pay the costs of preparing and producing such associated materials and programs as CJR or its designee may determine, including video, audio and written advertising materials; sponsorship of sporting, music, charitable or similar events; administering regional and multi-regional advertising programs, including, without limitation, purchasing direct mail and other media advertising and employing advertising agencies to assist with these efforts; and supporting other advertising, promotional and marketing activities. Franchisee agrees to participate in all advertising, marketing, promotions, research and public relation
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. may reimburse a franchisee for grand opening advertising expenditures up to a maximum of $5,000. This reimbursement is contingent upon several conditions.
First, the franchisee must conduct the grand opening advertising during a specific period, starting 30 days before the restaurant's opening and continuing for 90 days after the opening. This "Grand Opening Period" is the only time frame during which these advertising expenditures are eligible for reimbursement. Second, all grand opening advertising plans and expenditures must receive pre-approval from Carls Jr. This requirement ensures that the advertising aligns with the brand's standards and marketing strategies.
Finally, to receive the reimbursement, the franchisee must submit written proof of the advertising and associated expenses to Carls Jr. no later than 60 days after the end of the Grand Opening Period. This documentation is essential for verifying the expenditures and ensuring compliance with the reimbursement terms. Franchisees should be aware that failure to meet any of these conditions could result in denial of the reimbursement.