When do the Software Support Fees commence for a Carls Jr. franchise, and how are they paid?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
es payable by Franchisee to CKR for the Support Services.
ARTICLE 2
SUPPORT SERVICES
- 2.1 Support Services. CKR will provide the Support Services to Franchisee subject to the terms and conditions of this Agreement. CKR, in its sole discretion, may subcontract with third party vendor(s) to provide the Support Services directly to Franchisee. Franchisee may request Support Services by calling CKR's Help Desk at the access number set forth in Exhibit A, as modified from time to time
- 2.2 Covered Equipment. In order to facilitate the Support Services, Franchisee agrees to operate the Covered Equipment in accordance with the CKR's and the manufacturer's instructions. Franchisee shall enter into an agreement with Par Tech, Inc. ("Par Tech") or Retai
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees must begin paying Software Support Fees at the end of the first fiscal period following the date of the franchise agreement. These fees are paid to CKR, which appears to be the parent company, via ACH payment. The specific amounts and frequency of these fees are detailed in Exhibit A of the franchise agreement.
Carls Jr. retains the right to increase these Software Support Fees, but they must provide the franchisee with 60 days' prior written notice before implementing any changes. This allows franchisees some time to adjust their budgets and business plans accordingly.
In addition to the ongoing Software Support Fees, Carls Jr. franchisees must also participate in mandatory initial training programs for the PAR Brink and Crunch Time software. This initial training comes at a one-time cost of $1,250, which will be billed upon execution of the Franchise Agreement. Additional training programs may be available at CKR's discretion, but these would incur additional fees.