How much advance notice will Carls Jr. provide to a franchisee before increasing the License Fee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
grants Licensee a non-exclusive, non-transferable license to use the online Web sites and Web-based applications set forth on Exhibit A to access the Licensed Program and Content offered under the terms of this Agreement solely for Licensee's internal operations at each Franchised Restaurant at which Licensee remains Franchisor's franchisee in good standing ("License"). Licensor has the right to add, modify and/or remove features and elements of the Licensed Program and Content from time to time, without notice to, or the consent of, Licensee. A
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, Carls Jr. will provide franchisees with 30 days' prior written notice before increasing the License Fee. The License Fee is paid by the franchisee to Carls Jr. on the first day of each fiscal period to access and use the Licensed Program, Content, and Support Services. The amount of the License Fee is $14 for each Franchised Restaurant.
This advance notice allows franchisees time to adjust their financial planning and operational budgets in anticipation of the increased fee. It is a fairly standard practice in franchising to provide some advance notice of fee increases, although the specific duration can vary.
Franchisees should note that the License Fee is payable without any right of set-off or deduction, and all License Fees are payable in advance. This means franchisees cannot withhold payment or deduct from the License Fee for any reason. Additionally, any late payments will accrue interest at the maximum rate permitted by law in the state where the Franchised Restaurant is located, or 18% per annum calculated daily, whichever is less.