Under what conditions might Carls Jr. require a re-testing or re-audit of an approved supplier's facility at the franchisee's expense?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically require that the testing and/or facility audit be performed again at your expense to ensure continued compliance with our specifications and facility standards. We will advise you in writing if we revoke any approvals.
If you propose to purchase any goods or materials (that you are not required to purchase from CJR, an affiliate of CJR or a designated supplier) from a supplier that we have not previously approved, you must submit to us a written request for such approval, or you must request that the supplier do so. We have the right to require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities and that such information, specifications and samples as we reasonably designate be delivered to us and/or to an independent, certified laboratory designated by us for testing prior to granting approval. You must pay a fee not to exceed the reasonable cost of the inspection and the actual cost of the test. In addition to product testing, a facility audit may be required. We will notify you within 60 days as to whether you are authorized to purchase such products from that supplier. In the event we tentatively approve a request for an alternative supplier, you must submit a check for $1,500 to us as a deposit against the cost we incur in inspecting the supplier's facility. You will be responsible for additional costs and expenses associated with the inspection of the facility, which must occur before final approval. Approval of a supplier also may be subject to the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints) or other criteria (including the number of suppliers already approved) and may be temporary pending further evaluation of such supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–41)
What This Means (2025 FDD)
According to Carls Jr.'s 2025 Franchise Disclosure Document, Carls Jr. may periodically require re-testing and/or a facility audit of an already approved supplier at the franchisee's expense. This is to ensure the supplier's continued compliance with Carls Jr.'s specifications and facility standards. Carls Jr. will provide written notice if they revoke any approvals.
If a franchisee proposes to purchase goods or materials from a supplier not previously approved by Carls Jr., the franchisee must submit a written request for approval. As a condition of approval, Carls Jr. has the right to inspect the supplier's facilities and require the supplier to provide information, specifications, and samples for testing at an independent, certified laboratory. The franchisee must pay a fee not exceeding the reasonable cost of the inspection and the actual cost of the test. In addition to product testing, a facility audit may be required.
Carls Jr. will notify the franchisee within 60 days whether they are authorized to purchase products from the proposed supplier. If Carls Jr. tentatively approves a request for an alternative supplier, the franchisee must submit a $1,500 deposit to cover the cost of inspecting the supplier's facility. The franchisee is responsible for additional costs associated with the inspection, which must occur before final approval. The approval of a supplier may also be subject to the frequency of delivery, reporting capabilities, standards of service, and other criteria, and may be temporary pending further evaluation of the supplier.