Can Carvel advertise using the Marks anywhere, including inside a Carvel franchisee's Area of Protection?

According to Carvel's 2025 Franchise Disclosure Document, Carvel and its affiliates have the right to advertise using Carvel's trademarks (the Marks) anywhere they choose. This includes advertising both inside and outside of a franchisee's Area of Protection. This means that even though a franchisee may have a designated territory, Carvel can still conduct advertising campaigns that reach customers within that area.

This policy also extends to other business activities. Carvel and its affiliates can produce and sell approved products or any other products or services using the Marks and the System through any alternative channel of distribution located anywhere. This includes supermarkets, convenience stores, club stores, mail order, e-commerce channels, and delivery kitchens. They can also acquire, be acquired by, or merge with another entity with existing businesses or franchises that are similar to or competitive with the Businesses anywhere.

For a prospective franchisee, this means that Carvel retains significant control over advertising and distribution, even within a franchisee's protected area. While a franchisee may benefit from Carvel's overall marketing efforts, they should also be aware that Carvel can directly advertise and sell products within their territory through other channels. This could potentially impact a franchisee's sales and market share. Franchisees should consider the potential impact of these reserved rights on their business when evaluating the Carvel franchise opportunity.