Can Carvel authorize others to advertise using the Proprietary Marks anywhere?

According to Carvel's 2025 Franchise Disclosure Document, Carvel and its affiliates retain the right to authorize others to advertise using the Proprietary Marks anywhere. This is one of the rights Carvel retains under the Franchise Agreement, without providing any rights or compensation to the franchisee.

This means that Carvel has the authority to allow other entities, which may include other franchisees, third-party vendors, or even competitors, to use Carvel's trademarks in their advertising campaigns, regardless of the location. This could potentially impact a franchisee's business if these advertising efforts draw customers away from their specific location.

For a prospective franchisee, this underscores the importance of understanding the scope of rights retained by Carvel. While franchisees are granted the right to operate a Carvel Shoppe, Carvel maintains control over key aspects of the brand's marketing and distribution. This is a fairly standard practice in franchising, where the franchisor needs to maintain brand consistency and explore various market channels. However, it is crucial for franchisees to be aware of these potential competitive pressures and how they might affect their business's performance.