According to the Carvel Franchisee Disclosure Acknowledgement, what is the dependency between signing the acknowledgement and the receipt of the Franchise Disclosure Document?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You cannot sign or date this Acknowledgement the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, the Franchisee Disclosure Acknowledgement cannot be signed on the same day the Receipt for the Franchise Disclosure Document is signed. However, the Acknowledgement must be signed and dated on the same day the Franchise Agreement is signed and the franchise fee is paid. This acknowledgement serves to confirm that the franchisee has not received any unauthorized or misleading statements, has been properly represented, and understands the limitations on claims related to the franchise purchase and operation.
This requirement ensures that prospective Carvel franchisees have had sufficient time to review the Franchise Disclosure Document (FDD) before signing the Franchise Agreement. By preventing the simultaneous signing of the Acknowledgement and the FDD receipt, Carvel aims to provide franchisees with a buffer period to thoroughly consider the information provided in the FDD and seek professional advice if needed. This practice aligns with the broader goal of ensuring franchisees make informed decisions and understand the terms and conditions of the franchise agreement.
Furthermore, the Acknowledgement includes a directive for the franchisee to immediately contact Carvel's Senior Vice President of Franchise Administration if any statement within the Acknowledgement is found to be inaccurate or untrue. This step is crucial for addressing any discrepancies or concerns before finalizing the agreement. The Acknowledgement is designed to protect both the franchisee and Carvel by ensuring transparency and mutual understanding of the franchise terms.
However, it is important to note that these acknowledgements do not apply to franchisees in states with specific franchise disclosure laws, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Additionally, if the franchise is to be operated in, or the franchisee is a resident of, Maryland, the acknowledgement should not be signed.