When are taxes, fees, or assessments imposed on Carls Jr. as the franchisor due?
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 the 2025 Carls Jr. Franchise Disclosure Document, franchisees must reimburse Carls Jr. for any taxes, fees, or assessments imposed on them for acting as the franchisor or licensing the Proprietary Marks. These reimbursements are due within 10 days of the invoice date. However, if the invoice is associated with taxes tied to rent, then payment is due upon receipt of the invoice.
This means that if Carls Jr. incurs taxes, fees, or assessments related to its role as the franchisor or its trademarks, it will pass those costs on to its franchisees. Franchisees need to be prepared to pay these amounts promptly to avoid any potential issues with Carls Jr.
It is important for prospective Carls Jr. franchisees to understand this obligation and factor it into their financial planning. They should also clarify with Carls Jr. what types of taxes, fees, or assessments they might expect to be responsible for, and how frequently these charges are typically invoiced.