What actions are considered 'injurious or prejudicial to the goodwill' of the Carvel brand that a franchisee must avoid?

Based on the 2025 Carvel FDD, a franchisee must avoid association with a Host Facility whose brand deteriorates in quality or reputation, such that Carvel's association with the Host Facility's brand is damaging or may damage the Carvel brand or the Marks. This is based on Carvel's sole judgment.

This condition is particularly relevant for franchisees operating within a Host Facility, where the reputation of the host business can directly impact the Carvel brand. It highlights the importance of Carvel maintaining brand standards and protecting its reputation, even when co-located with another business.

For a prospective Carvel franchisee, this means carefully evaluating the reputation and stability of any potential Host Facility before entering into an agreement. It also underscores the risk that Carvel could require disassociation from a Host Facility if its brand image declines, potentially impacting the franchisee's business operations and revenue.