Does Carvel or its affiliates receive fees or financial benefits from lenders for franchisee financing?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.
We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you and if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
Source: Item 10 — Financing (FDD pages 58–59)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel does not offer direct or indirect financing to franchisees. While Carvel may refer prospective franchisees to leasing or financing companies that are not affiliated with them, neither Carvel nor its affiliates receive any fees or other financial benefits from lenders for franchisee financing. Carvel may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and Carvel may pay the advisor for this assistance to franchisees. However, franchisees are not required to participate in any financing program that Carvel implements.
This arrangement means that Carvel franchisees must secure their own financing through third-party lenders. The fact that Carvel does not receive financial benefits from lenders could be seen as a positive aspect, as it removes a potential conflict of interest. Franchisees can be assured that Carvel's referrals to financing companies are not influenced by any financial incentives.
Prospective franchisees should carefully research and compare different financing options to find the best terms and conditions for their individual circumstances. They may also want to inquire about the advisor that Carvel uses to assist franchisees with securing financing, including the advisor's qualifications and experience.