Carl Karcher Enterprises, Inc. Individual Franchise Application

Carl Karcher Enterprises, Inc.
Individual Franchise Application
In order to be considered for a franchise, you must complete the following information in
its entirety:
APPLICATION PROCESS
Application submitted by prospective franchisee. (If partners are involved, all
partners must submit a completed application packet to start the approval process.)
Financial Approval – Carl’s Jr. evaluates each application to ascertain a candidate’s
financial ability to successfully capitalize a Carl’s Jr. restaurant venture.
Development Strategy Meeting – All candidates must meet with the Franchise and
Operations team in Carpinteria, CA office to discuss development goals and
objectives.
In addition, you will receive a copy of the Franchise Disclosure
Document.
2- Day PQR (Pre-Qualification Review) – Candidates must participate for 2 days in a
restaurant to gain an initial understanding of what is involved in operating a Carl’s
Jr. restaurant.
Once all requirements are met in the application process and Carl Karcher
Enterprises Inc. has approved the applicant as a Carl’s Jr. franchisee, Franchise
Administration will prepare final agreements for signature and fees are then paid.
DEVELOPMENT PROCESS
All multi-unit franchisees are required to sign a ‘Development Agreement’ and pay
fees associated with securing their territory.
For each Carl’s Jr. Restaurant, a preliminary ‘Site Proposal Package’ specifying the
intended site for development must be submitted along with the Real Estate
package for evaluation.
The Franchise Agreement must be executed and Franchise Fees must be paid prior
to any construction beginning.
Training begins.
Construction begins and equipment is ordered.
Restaurant is approved to open.
Unit Opening.
For additional information regarding the application, financial approval and the site
approval process, please call the Franchise Sales and Development Department at (805)
745.7841 or Toll Free (866) 253.7655.
Carl Karcher Enterprises, Inc.
Individual Franchise Application
In order to be considered for a franchise, you must complete the following information in
its entirety:
INDIVIDUAL APPLICATION
All individual applicants and/or partners who will be owning and operating the
restaurant(s) must submit a completed application along with all required
attachments including:
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Completed and signed applications
Resume which details applicant’s background, work experience and other
pertinent affiliations
A list or copy of all Notes for which the applicant(s) are Co-Maker, Joiner, or
contingently liable, excluding primary residence
Profit and loss statements on any personally owned business for the past two (2)
years
Credit Authorization Release Form with signature
Applicant’s personal income tax returns for the last two (2) years
Account Verification Forms - Send one (1) copy to be completed by your banking
institution with instructions to return to us. You may provide copies of bank and/ or
brokerage statement in lieu of completing the account verification forms.
All individuals and/or partners whose liquidity and net worth is to be considered
for financial approval to become a Franchisee must submit a completed application
along with all the required attachments.
Only applications that are complete and adhere to the application format will be considered. All
applicants must meet or exceed a minimum net worth requirement of $300,000 liquid assets (per
store) and $1,000,000 total net assets (per store).
Please send documents in confidence to:
Carl Karcher Enterprises, Inc.
ATTN: Franchise Sales
6307 Carpinteria Ave., Suite A
Carpinteria, CA 93013-2901
Telephone: 866-253-7655
THIS IS NOT A CONTRACT.
SUPPLYING OR COMPLETING THIS FORM INCURS NO OBLIGATION ON EITHER PARTY.
Carl Karcher Enterprises, Inc.
Individual Franchise Application
PERSONAL INFORMATION
Name:
Social Security#:
Passport Number#:
Date of Birth:
Primary Residence Address:
City:
State:
Zip Code:
Home #:
Mobile #:
Fax#:
Country of Citizenship:
Driver’s License # :
Email:
I have permanent residence rights in:
State:
Marital Status:
Name of Spouse:
Occupation of Spouse:
Social Security #
Length of Employment:
Home:  Own
 Rent
Length of Occupancy:
Last former Residence: (If less than 5 years at current address)
Address:
Date of Birth:
Income:
 Own
Rent
If prior residence was rented, Name & Number of Landlord
Length of Occupancy
E
Education:
Degree or last year of school completed:
Name of College:
EMPLOYMENT BACKGROUND
List employment history for the past ten years, beginning with the most current.
Please include a resume.
From:
To:
Company Name & Address
Title
Annual
Income
May we contact your present employer?
May we contact you at your business?
Yes
Yes
Current Business Affiliations other than occupation (Owner, Partner, Officer, etc.)
REFERENCES
Please provide contact information
Name
Relationship
Telephone
Email
No
No
OTHER BACKGROUND INFORMATION
Have you and/or any applicable partners, officers, directors, or shareholders within your
business or personal affiliations ever:
Had any administrative, criminal, or civil action filed against you alleging fraud, embezzlement,
fraudulent conversion, restraint of trade, unfair or deceptive practices, misappropriation of
property, or comparable allegations?
No
Yes
Been convicted of a felony or pleaded nolo contendere to a felony charge or been held liable in a
civil action by final judgment or been the subject of a material complaint or other legal
Yes
No
proceeding?
If yes, state the nature of the crime(s), when and where convicted and disposition of the case:
Been adjudged bankrupt or reorganized due to insolvency?
Yes
Have you been an owner or executive of a company in bankruptcy
Yes
(other than a passive owner of publicly traded shares)?
Are you related to any officer, director, employee or franchisee of
Yes
CKE Restaurants Inc., or any affiliated company?
Do you or your employer have a business relationship (including
as a supplier of goods or services) with Carl Karcher Enterprises, Inc. or any affiliate
Yes
of CKE Restaurants, Inc. or any Hardee’s or Carl’s Jr. franchisee?
Are you now, or have ever been a franchisee in any system?
Yes
If yes, identify system, your location, and time period.
Have you ever been an investor in or operator of any fast food restaurant?
Yes
If you answered “yes” to any of the above questions please provide details:
No
No
No
No
No
No
FINANCIAL RESOURCES AND ORGANIZATION
You will need to substantiate the information below:
How much cash can you personally invest in a Carl’s Jr. Restaurant business? $
What is the source of those funds?
What is your approximate net worth? $
What cash or liquid funds do you currently have? $
If you will not be the only owner in the business, list all stakeholders below and describe their
participation.
Percent of
Expected Cash
Ownership
Investment
% $
% $
% $
% $
Which owner will function as the “chief executive” in your group?
Approximate Net
Worth
Name of Owner
Who will be full time in charge of restaurant operations?
Which owner(s) plan to devote full time to the Carl’s Jr. business?
$
$
$
$
Will any person or entity other than the partners be entitled to receive, directly or indirectly, part
No
of the profits from the operation of the restaurant?
Yes
If so, provide details on Additional Information Sheet.
If you are approved for a Carl’s Jr. franchise, will any partner be involved
No
in any business activity other than the Carl’s Jr. restaurant business?
Yes
(If so, provide details on Additional Information Sheet.)
Will the Operating Partner receive income from any source other than
the restaurant?
(If so, provide details on Additional Information Sheet.)
Yes
No
If you answered “yes” to any of the above questions please provide details:
FRANCHISE INFORMATION
Location preferences: 1st
Concept desired: Full Service
2nd
Dual Concept
3rd
In-Line
Non Traditional
Do you currently own/operate any other franchises?
Yes
No
If yes, please indicate franchise name(s), location(s) and type of business(es)?
Why are you interested in pursuing a quick service restaurant franchise?
Please detail any retail or service business experience that you have:
Are you willing to relocate?
Yes
No
LEGAL NOTICE
All information contained herein is confidential and is strictly for the purpose of facilitating
the Carl Karcher Enterprises, Inc. (“CKE”) application process. All applicants will receive
consideration without regard to race, color, religion, sex or national origin.
The person signing below (“Applicant”) understands that, during the course of the franchise
application process, CKE will disclose Confidential Information to Applicant. (The term
“Confidential Information” means any and all information, manuals and materials
containing trade secrets; non-public business methods; improvements; data processes;
formulae; designs; know-how; and all confidential technical and non-technical information
that is disclosed to Applicant by or on behalf of, and directly or indirectly by, CKE or its
affiliates.)
Applicant agrees that he may use the Confidential Information solely for the purposes of
evaluating whether or not to pursue a franchise opportunity with CKE. Except as expressly
authorized by CKE in writing, Applicant agrees to maintain all Confidential Information in
strict confidence and not to use, or permit others to use, Confidential Information for any
other purpose. Applicant will not disclose any Confidential Information to anyone other
than Applicant’s employees and/or third parties authorized by CKE to receive Confidential
Information, each of whom: (1) has a reasonable need to know the Confidential
Information in connection with the evaluation of the franchise opportunity; (2) has been
advised of the confidential nature of the Confidential Information; and (3) if requested by
CKE, has signed an agreement, in a form satisfactory to CKE, obligating the employee or
third party to comply with all the provisions of this Agreement. The obligations of non-use
and non-disclosure with respect to particular items of Confidential Information will remain
in effect indefinitely.
The submission of this application does not obligate either Applicant or CKE in any manner
nor does it imply that there is any legal or commercial relationship between either party.
CKE reserves the sole right to approve or disapprove the application for any reason it may
determine and if CKE disapproves the application, it shall have no liability to the
undersigned. This application is merely a preliminary procedure.
Acknowledgement is made that the information supplied by me is true and
correct. I herby authorize CKE to obtain any information about my credit history
or other information that it deems appropriate to evaluate my suitability as a
potential franchisee.
Signature:____________________________________________Date:________________________
PERSONAL FINANCIAL STATEMENT
Name:
Address:
City
State
ASSETS
Cash on Hand and in Banks (Schedule 1)
Trade Accounts and Loans Receivable
(Schedule 3)
$
US Government Securities (Schedule 2) $
Non-Trade Accounts and Loans Receivable
(Schedule 3)
$
Notes Receivable-Secured (Schedule 3) $
Notes Receivable-Unsecured (Schedule 3)$
Life Insurance, Cash Surrender Value
(Schedule 4)
$
Stocks and Bonds-Marketable and
Non-Marketable (Schedule 5)
$
Real Estate (Schedule 6)
$
Zip
LIABILITIES AND NET WORTH
Notes Payable to Banks-Unsecured (Schedule 1) $
Notes, Loans and Advances Payable to
Relatives
$
Notes Payable to Banks-Secured
(Schedule 1)
$
Notes, Loans and Advances Payable to Others
$
Contract Accounts Unpaid
$
Interest and Rents Payable
$
Loans Against Life Insurance (Schedule 4) $
Accounts Payable
$
Total Assets
$
$
$
$
$
$
$
$
$
Taxes and Assessments Payable (Schedule 6)
$
Mortgages Payable on Real Estate (Schedule 6)
(Outstanding Balance)
$
Brokers’ Margin Accounts (Schedule 5)
$
Liens on Real Estate (Schedule 6)
$
Federal and State Taxes on Current Income
$
Other Indebtedness (Itemize)
$
$
$
$
$
$
Total Liabilities
$
Net Worth
$
Total Liabilities and Net Worth
$
ANNUAL SOURCE OF INCOME
Salary and/or Fees
Bonus and Commissions
Dividends and Interest
$
$
$
CONTINGENT LIABILITIES
Guarantor Obligations
Legal Claims
Endorser or Co-Maker Obligations
Automobiles-Market Value-Registered in
Own Name Number of Vehicles
$
Other Assets, Property or Investments (Itemize)
$
$
Real Estate Income
Business, Profession or Royalty Income
Other Income (Itemize)
Total
$
$
$
$
$
$
Leases or Contracts
Liens or Special Debt
Provision for Federal or Other Taxes
Other Liabilities (Alimony, Child Support
Maintenance, etc.) (Please Itemize)
Total
$
$
$
$
$
$
$
$
$
PERSONAL FINANCIAL STATEMENT - SCHEDULES
Schedule 1 – Banking Relations
Name and Location
of Bank
Cash Balance
Outstanding
Loans,
Guarantees
Maturity of
Loan
Description of
Security
$
$
$
Schedule 2 – Government Securities
Description of
Security
Market
Value
$
$
Face Value
Maturity
Date
$
$
Income
Received
Last Year
Are Securities
Pledged?
$
$
Schedule 3 – Accounts, Loans, and Notes Receivables – Secured and Unsecured
Name of Debtor
Maturity
Date
Face Value
Monthly
Installments
Payments
$
$
$
Balance Due
Description of
Security
$
$
$
Schedule 4 – Life Insurance
Insurance
Company
Beneficiary
and
Relationship
Type of
Policy
Face
Amount
Present
Cash
Surrender
Value
Amount
of Policy
Loan
Annual
Premium
$
$
$
$
$
$
$
$
Is Policy
Assigned?
Schedule 5 – Stocks and Bonds
Name of
Stock/Bond
Number
of
Shares/
Bonds
Face
Value of
Bonds
$
$
Cost
$
$
Market
Value
$
$
Income
Received
Last Year
Are Shares/
Bonds Pledged?
$
$
Schedule 6 – Real Estate
Address
Title in
Whose
Name(s)
Cost
$
$
Market
Value
$
$
Balance
on
Mortgage
$
$
Date of
Maturity
Installment
Amount
$
$
CREDIT VERIFICATION RELEASE FORM
I am submitting this Personal Profile as part of my application for a Carl’s Jr. franchise. I
confirm and represent that the personal and financial information I am submitting is true
and complete as of the date below. I understand that Carl Karcher Enterprises, Inc.
(“CKE”) and its affiliates consider this information important and may rely on the
information I submit in making decisions about whether to continue processing my
franchise application, to allow me access to training programs and confidential materials,
and to enter into an agreement with me. If there is any material change in the information
submitted here or later submitted by me during the franchise application process with CKE,
I will promptly notify CKE in writing of the change or formally withdraw my application so
that CKE does not rely on information that to my knowledge has become incorrect or
incomplete in any material way.
I authorize CKE to check my character, my background, my motor vehicle record, and my
financial and credit history. I expressly authorize any past or present employer, any law
enforcement agency, and any person who has knowledge of my character, experience and
activities (including by way of example, education and work experience), or financial or
credit history to release this information to CKE I understand that one or more credit
reporting agencies may make credit histories available to CKE upon which it may rely, and
that financial institutions with which I have relationships may also supply information about
their relationship with me. If any person authorized by me provides true and accurate
information to CKE about me, then to the extent that person is or would be liable to me in
any way as a result of furnishing such information, I release such person from such
liability. I authorize CKE to release to prospective financing sources such financial and
other information concerning me in its files as may be requested.
In addition, I authorize the procurement of an investigative background search in
accordance with anti-terrorism legislation, such as the USA Patriot Act and Section 1 of
U.S. Executive Order 13224, issued September 23, 2001. I also certify that neither I, nor
any of my funding sources, is or has ever been a terrorist or suspected terrorist, or a
person or entity described in the aforementioned legislation. I understand that my
application will not be approved if I have ever been a suspected terrorist or associated in
any way with terrorist activities.
Please check the following box if you agree to the Statement and Verification above
Applicant
Co Applicant
Home
Address:
City/State/Zip:
Social
Security:
Date of Birth:
Federal
ID:
Tax
Signature:
Signature:
Date:
Date:
ACCOUNT VERIFICATION RELEASE FORM
You may provide copies of bank and brokerage statements in lieu of completing
this form.
Use a photocopy of this form for EACH ACCOUNT for each institution.
Complete Part One and take to your banking institutions.
Part two MUST be completed by your banking institutions and returned to Carl’s Jr.
1. Name of Institution: _____________________________________________________________
Address: _________________________________________________________________________
City: ______________________________________State:________________Zip:_____________
I do hereby give permission to the above-mentioned institution to disclose to Carl
Karcher Enterprises, Inc., the information requested below on the accounts maintained
at your institution.
Date Account Opened: _______________________ Account Number:______________________
Name:________________________________________ Signature:_____________________________
2. The following is to be completed by the financial institution.
This is to certify that as of ___/___/______, the above-named person has a deposit in
the above account with this institution.
The sum of:
______________________________________________________________________________________
Name:
______________________________________________________________________________________
Signer’s Title:
______________________________________________________________________________________
Signature:________________________________________ Date: ____________________________
AFTER COMPLETION BY THE INSTITUTION, PLEASE RETURN TO:
Carl Karcher Enterprises, Inc.
ATTN: Franchise Sales
6307 Carpinteria Ave., Suite A
Carpinteria, CA 93013-2901
Telephone: 866-253-7655
BUSINESS PLAN FOR PROPOSED FRANCHISEES
COMPANY OVERVIEW
Legal Name.
Legal form of Company (Sole Proprietorship/ General or Limited Liability, etc.).
Address, phone number, email, of Corporate Headquarters.
Summary of proposed franchise opportunity.
MANAGEMENT TEAM / BUSINESS PARTNER
Detailed background and job description for each business partner, investor and
management team member, along with additional staffing projected over the first
five years.
Your plan should include who will be responsible for the following:
Day-today operations
Real Estate & Construction
Finance
Marketing
MARKET ANALYSIS & DEVELOPMENT PLAN
Brief summary of your projected marketplace.
General overview – growth of industry and commerce, etc.
Population growth rate.
Review of the competition – number and location of units; sales; projected growth;
pricing and promotional strategies.
Risks. Briefly discuss the business risks that your company will have to deal with as
it begins to expand in the proposed marketplace, along with Real Estate and
Construction issues.
MARKET PLAN
Briefly summarize the promotional tactics that you plan to use, in conjunction with
DMA requirements, to introduce Carl’s Jr. in the proposed markets.
Training Requirements.
Identify Operating Principal and Multi-Unit Manager (if applicable) to attend the
Franchise Management Training Program.
Identify and/ or select other individuals that will need to attend the Franchise
Management Training Programs.
Develop a plan for implementing a training system for training additional
individuals.
Financial Plan.
Outline projected capital requirements for the first year along with anticipated
additional investments required for the following four years along with plans for
funding new development.
DEVELOPMENT PROCESS
Application Submitted by
Prospective Franchisee (All
partners must submit a
completed application packet
to start the approval process)
Site Development Proposal
Submitted with Real Estate
Package to include: Pro Forma
Plans, Interior, Exterior
Elevations, Color Boards
CKE review process
Site approved
Franchise Agreement Executed
Fees Paid
Financial and Credit Approval –
(Each application reviewed
independently)
New Franchise Training
12 Weeks
Pre-Qualification Meeting
CKE conducts review in market
with applicant
Plans approved
Construction Begins
Operational Overview and
Strategy Meeting
1. Business Plan Review
2. Two day restaurant
orientation
Crew Training for
New Store Opening
Development Agreement
Signed and Fees Paid
Restaurant
Opens