When will Carls Jr. pay the franchisee the $50,000 cash incentive for a qualifying 'Conversion Restaurant'?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
d Restaurant's second 12 months of operation under the Franchise Agreement; and (C) 1% of Gross Sales for Gross Sales accruing during the Franchised Restaurant's third 12 months of operation under the Franchise Agreement. Thereafter and during the remaining Initial Term of the Franchise Agreement the royalty fee will revert to 4% of Gross Sales and the APO will revert to 5.5% of Gross Sales. The royalty fee and APO to be paid pursuant to thi
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee may be eligible for a $50,000 cash incentive if they open a 'Conversion Restaurant'. To qualify, the restaurant must be designated as a 'Conversion Restaurant' by Carls Jr. and must open within 12 months of signing the Franchise Agreement.
If these conditions are met, Carls Jr. will pay the franchisee the $50,000 cash incentive. The payment will be made approximately one month, or thirty days, after the restaurant officially opens for business.
It is important to note that this incentive is part of a specific program, and by participating in this program, the franchisee acknowledges they may not be entitled to other incentives offered by Carls Jr. Therefore, a prospective franchisee should carefully consider the terms and conditions of this incentive program and how it compares to other potential incentives before making a decision.