Who is responsible for reimbursing costs associated with non-cash payment systems at a Carls Jr. franchise?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall accept debit cards, credit cards, stored value gift cards or other non-cash payment systems specified by CJR to enable customers to purchase authorized products and shall obtain all necessary hardware and/or software used in connection with these non-cash payment systems. At all times, Franchisee must maintain relationships with all issuers or service providers that CJR designates as mandatory, and Franchisee must refrain from using any services or providers that CJR has not approved in writing or that CJR has revoked its approval. CJR may modify its requirements and designate additional approved or required methods of payment and vendors for processing such payment. Franchisee shall reimburse CJR for all costs associated with such non-cash payment systems as they pertain to the Franchised Restaurant. In addition to the requirements set forth in Section 13.E. above, Franchisee must also comply with the Fair and Accurate Credit Transactions Act ("FACTA"). Franchisee must comply with all laws and regulations relating to privacy and data protection and must comply with any privacy policies or data protection and breach response policies, or any other policies related to data privacy or data use, that CJR periodically may establish. Franchisee must notify CJR immediately if it is notified of a credit card or data breach related to the Franchised Restaurant and must fully cooperate with CJR and applicable authorities in resolving such breach. Further, Franchisee must cooperate with CJR fully regarding media statements and other items related to managing any such event for the purpose of protecting the Proprietary Marks and System as set forth below.
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 Carls Jr. for all costs associated with non-cash payment systems pertaining to their franchised restaurant. This includes costs related to debit cards, credit cards, stored value gift cards, and any other non-cash payment systems that Carls Jr. specifies.
This means that as a Carls Jr. franchisee, you will need to factor in the expenses for hardware, software, and transaction fees associated with processing non-cash payments. Carls Jr. has the authority to modify payment requirements, designate approved payment methods, and choose vendors for processing payments. Franchisees must maintain relationships with mandatory issuers or service providers designated by Carls Jr. and must avoid using unapproved services or providers.
Furthermore, franchisees must comply with the Fair and Accurate Credit Transactions Act (FACTA) and all laws and regulations relating to privacy and data protection. Franchisees are also required to adhere to any privacy policies, data protection, and breach response policies established by Carls Jr. It is imperative to notify Carls Jr. immediately of any credit card or data breach related to the franchised restaurant and fully cooperate with Carls Jr. and applicable authorities in resolving such breaches. Franchisees must also cooperate with Carls Jr. regarding media statements and other items related to managing any such event for the purpose of protecting the Proprietary Marks and System.
In summary, the franchisee bears the financial responsibility for all aspects of non-cash payment systems and must adhere to Carls Jr.'s guidelines and legal requirements related to data protection and breach management. This arrangement ensures that Carls Jr. maintains control over payment processing standards and protects its brand reputation, while the franchisee covers the associated costs.