Carl Karcher Enterprises, Inc. Corporate Franchise Application

Carl Karcher Enterprises, Inc.
Corporate 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.
Corporate Franchise Application
In order to be considered for a franchise, you must complete the following information in
its entirety:
CORPORATE APPLICATION
Corporate applications are to be submitted by high net worth companies with certified
financial statements that must be either audited or reviewed by a CPA firm. Compiled
statements are not acceptable for corporate applications.
Partners should use
Individual Applications.
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Articles of Incorporation for each entity
List of shareholders for each entity
Registered business addresses and contact information for all Principals, and all
related Corporate Entities
Two (2) years of financial statements for the group and related businesses,
including balance sheet and profit and loss statements
Two (2) years of government tax returns
A resume detailing the background and experience of the designated Managing
Director and Operator Candidate
Please note that the Corporate/LLC entity submitted for the purpose of
‘financial pre-qualification approval’ will be presumed by CKE to be the
intended Franchisee or serve as the primary guarantor of the Franchisee.
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).
THIS IS NOT A CONTRACT.
SUPPLYING OR COMPLETING THIS FORM INCURS NO OBLIGATION ON EITHER PARTY.
Carl Karcher Enterprises, Inc.
Corporate Franchise Application
COMPANY DATA
Company Name:
Federal ID No.:
Primary Address:
City:
State:
Zip Code:
Telephone #:
Mobile #:
Fax#:
Date of Incorporation:
State Incorporated In:
Name of Officer(1) :
Title:
Social Security No:
Name of Officer(1) :
Title:
Social Security No:
Please indicate the primary business of your company:
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
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 arrested for any matters for which you are currently
out on bail, or on your own recognizance pending trial?
Yes
No
Yes
No
If yes, state the nature of the crime(s), and date and location of matter:
Been adjudged bankrupt or reorganized due to insolvency?
LIST ALL BUSINESSES IN WHICH THE COMPANY HAS A FINANCIAL INTEREST
Business Name
Address
Position/Ownership %
BUSINESS REFERENCES – LIST AT LEAST THREE
Company Name
Contact Address/Phone Number/Contact Information
BANKING REFERENCES – LIST AT LEAST THREE
Bank Name
Contact Name /Phone Number
Address
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)?
How will you finance this franchise investment?
PROPOSED MANAGEMENT STRUCTURE
Please indicate proposed management structure and names of individuals responsible for
the development and operation of the Carl Karcher Enterprises, Inc. franchise:
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
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).
Signature:____________________________________________Date:________________________
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 persons signing below (“Applicant”) understand 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 Applicant 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 Applicant.
This application is merely a preliminary procedure.
Applicant authorizes 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. Applicant also certifies that neither Applicant,
nor any of Applicant’s funding sources, is or has ever been a terrorist or suspected
terrorist, or a person or entity described in the aforementioned legislation. Applicant
understands that this application will not be approved if Applicant has ever been a
suspected terrorist or associated in any way with terrorist activities.
Acknowledgement is made that the information supplied by Applicant is true and
correct.
Applicant herby authorizes CKE to obtain any information about
Applicant’s credit history or other information that it deems appropriate to
evaluate Applicant’s suitability as a potential franchisee.
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:
Fed Tax ID:
Signature:
Signature:
Date:
Date:
RETURN APPLICATION AND REQUIRED ATTACHEMENTS 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-to-day 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
Financial and Credit Approval –
(Each application reviewed
independently)
Site approved
Franchise Agreement Executed
Fees Paid
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