What is the payment deadline for taxes, fees, or assessments that Carls Jr. imposes on franchisees?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 4%-5% of Gross Sales (2) | Within 10 calendar days after the end of each fiscal week | Gross Sales includes all revenue from the sale of all services and products (except CJR-approved promotional items) and all other income of every kind and nature (excluding revenue from the sale of stored value gift cards or gift certificates but including revenue when gift certificates are redeemed or stored value gift cards are debited) related to the Franchised Restaurant, whether for cash or credit and regardless of collection in the case of credit; provided, however, that Gross Sales do not include sales taxes or other taxes collected from customers by you for transmittal to the appropriate taxing authority. |
| Taxes | You must reimburse us for any taxes, fees or assessments imposed on us for acting as franchisor or licensing the Proprietary Marks. | Within 10 days of invoice, except if the invoice is associated with taxes tied to rent then due upon receipt of invoice |
Source: Item 6 — Other Fees (FDD pages 28–35)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, franchisees must reimburse Carls Jr. for any taxes, fees, or assessments imposed on them for acting as a franchisor or licensing their proprietary marks. The payment for these taxes is due within 10 days of the invoice date. However, if the invoice is associated with taxes tied to rent, the payment is due upon receipt of the invoice.
This means that as a Carls Jr. franchisee, you need to be prepared to pay these tax-related invoices promptly to avoid any late payment penalties or potential issues with the franchisor. It's important to carefully review each invoice to understand what taxes, fees, or assessments are being charged and to ensure timely payment within the specified timeframe.
Franchisees should maintain organized records of all invoices and payments related to these taxes to ensure compliance and avoid any discrepancies. Understanding the distinction between regular tax invoices (due within 10 days) and those tied to rent (due upon receipt) is crucial for managing cash flow and meeting payment obligations.