What actions must a Carvel franchisee complete by the Site Approval Deadline?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Site Approval Deadline. You will have until the deadline specified in Schedule A to (i) identify the Accepted Location, (ii) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location (the "Site Approval Deadline").
- D. Failure to Meet Deadlines. If you are unable to meet the Site Approval Deadline, the Construction Start Deadline, or the Opening Deadline, you may request an extension before the expiration of any missed deadline. We have the right to require you to pay a $2,500 extension fee and to sign a general release, if we agree to modify (or if you miss) any of the deadlines. We are not obligated to extend any deadlines. If (i) you fail to cure your failure to meet the Site Approval Deadline or the Construction Start Deadline within 30 calendar days after we send you notice of such default or (ii) you do not meet the Opening Deadline, we may terminate this Agreement, as provided in Sections 17.2.I and 17.3.J.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must complete several actions by the Site Approval Deadline. This deadline, specified in Schedule A of the Franchise Agreement, requires the franchisee to (i) identify the Accepted Location, (ii) obtain Carvel's acceptance of the Accepted Location, (iii) sign any documentation Carvel requires to document the Accepted Location, (iv) obtain Carvel's acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location. These steps are crucial for securing the physical location from which the Carvel franchise will operate.
Failure to meet the Site Approval Deadline can have financial implications. While Carvel may grant an extension, they have the right to require a $2,500 extension fee and a signed general release. However, Carvel is not obligated to extend the deadline. Missing the Site Approval Deadline and failing to rectify it within 30 calendar days after receiving notice from Carvel can lead to the termination of the Franchise Agreement.
For a prospective Carvel franchisee, understanding and adhering to the Site Approval Deadline is critical. It involves a coordinated effort to identify a suitable location, gain approval from Carvel, and finalize the lease or purchase agreement. The franchisee should proactively manage this process to avoid potential delays, extension fees, or even termination of the agreement. Schedule A of the Franchise Agreement will contain the specific date for the Site Approval Deadline.