Who is responsible for reimbursing CJR for the costs associated with customer satisfaction programs related to a Carls Jr. franchised restaurant?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Carl's Jr. Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as CJR may require. CJR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse CJR for all costs related to the Franchised Restaurant associated with any and all of these programs.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the franchisee is responsible for reimbursing CJR for all costs associated with customer satisfaction programs related to their franchised restaurant. These programs are initiated to verify customer satisfaction and the franchisee's compliance with operational and other aspects of the Carls Jr. system. These programs include, but are not limited to, secret shoppers, customer surveys, or other Quality Assurance (QA) programs that Carls Jr. may require.
Carls Jr. will share the results of these programs with the franchisee, as they pertain to the specific franchised restaurant. This allows the franchisee to understand areas where they excel and areas needing improvement. By participating in these programs, franchisees contribute to maintaining and enhancing the goodwill associated with the Carls Jr. brand, proprietary marks, and overall system.
This requirement means that a Carls Jr. franchisee must budget for these reimbursement costs, as they are in addition to other fees and expenses associated with operating the franchise. The frequency and cost of these programs are determined by Carls Jr., so the franchisee has limited control over these expenses. It is important for prospective franchisees to understand the potential financial impact of these programs and to inquire about the typical costs associated with them during the due diligence process.