May affiliates of Carvel, including Affiliated Programs and other portfolio companies owned by Roark Capital Management, operate or franchise businesses that sell similar goods or services to Carvel franchisees?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described in Item 1, we do not operate or franchise, or currently plan to operate or franchise, any business under a different trademark that sells or will sell goods or services similar to those that our franchisees sell. However, our affiliates, including the Affiliated Programs described in Item 1 and other portfolio companies that currently are or in the future may be owned by private equity funds managed by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services to those that our franchisees sell.
Item 1 describes our current Affiliated Programs that offer franchises, their principal business addresses, the goods and services they sell, whether their businesses are franchised and/or company-owned, and their trademarks. All of these other brands (with limited exceptions) maintain offices and training facilities that are physically separate from the offices and training facilities of our franchise network. Most of the Affiliated Programs are not direct competitors of our franchise network given the products or services they sell, although some are, as described in Item 1. All of the businesses that our affiliates and their franchisees operate may solicit and accept orders from customers near your business. Because they are separate companies, we do not expect any conflicts between our franchisees and our affiliates' franchisees regarding territory, customers and support, and we have no obligation to resolve any perceived conflicts that might arise.
Source: Item 12 — Territory (FDD pages 74–79)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, affiliates of Carvel, including Affiliated Programs and other portfolio companies owned by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services to those that Carvel franchisees sell. Item 1 of the FDD describes Carvel's current Affiliated Programs that offer franchises, their principal business addresses, the goods and services they sell, whether their businesses are franchised and/or company-owned, and their trademarks.
Carvel states that most of the Affiliated Programs are not direct competitors of the Carvel franchise network given the products or services they sell, although some are, as described in Item 1. All of the businesses that Carvel's affiliates and their franchisees operate may solicit and accept orders from customers near a franchisee's business. Carvel does not expect any conflicts between their franchisees and their affiliates' franchisees regarding territory, customers and support, and Carvel has no obligation to resolve any perceived conflicts that might arise because they are separate companies.
This means that a prospective Carvel franchisee should be aware that other businesses owned by Carvel's parent company or affiliated programs could potentially compete with their Carvel shop. While Carvel indicates that most affiliated programs are not direct competitors, the possibility of competition from these sources exists. It is important for potential franchisees to carefully review Item 1 of the FDD to understand the nature of these affiliated programs and assess the potential impact on their business. Furthermore, the franchisee should recognize that Carvel does not guarantee resolution of conflicts that may arise with these affiliated businesses.