Who administers the Carvel Ad Fund?

According to Carvel's 2025 Franchise Disclosure Document, the Ad Fund is administered either by Carvel or one of its affiliates. Carvel retains sole authority over all advertising programs, promotions, and the utilization of the Ad Fund. This includes complete control over creative concepts, materials, media selection, and the allocation of advertising resources. Carvel also reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales it deems appropriate.

This means that as a Carvel franchisee, you will be required to contribute to the Ad Fund, but Carvel has the final say on how those funds are spent. While a Franchise Advisory Council exists, it only provides suggestions and lacks decision-making authority. Carvel is not obligated to ensure that advertising expenditures benefit each franchisee proportionately or directly impact their specific area.

Carvel may use the Ad Fund for various advertising, promotional, and brand-building activities, including television, radio, magazine, newspaper, and digital advertising campaigns. The funds can also cover the costs of public relations, advertising agencies, market research, and the development and maintenance of websites and applications related to marketing programs. Carvel can also use the Ad Fund to compensate themselves for reasonable administrative costs and overhead related to these activities.

Carvel's control over the Ad Fund is subject to certain limitations. The funds cannot be used in a way that exclusively benefits Carvel's licensees that manufacture and sell approved products or primarily to solicit the sale of franchises. However, Carvel does not have to ensure that advertising expenditures are equivalent or proportionate to a franchisee's contributions or that any advertising directly benefits a franchisee's area.