Can Carvel authorize third parties to advertise using the Carvel Marks anywhere?

According to the 2025 Carvel FDD, Carvel and its affiliates have the explicit right to authorize third parties to advertise using the Carvel Marks anywhere. This includes advertising both inside and outside of any designated Area of Protection that a franchisee might have. This right is reserved exclusively to Carvel and its affiliates, without providing any compensation to the franchisee.

For a prospective Carvel franchisee, this means that Carvel can authorize advertising using the brand's trademarks in any location, regardless of whether it impacts a franchisee's territory. This could lead to increased brand awareness but also potential competition from other businesses or channels that Carvel authorizes to use the Marks. The franchisee has no protected rights regarding advertising.

This practice is relatively common in franchising, where franchisors retain control over brand-related decisions to ensure consistency and protect the overall brand image. However, it's crucial for franchisees to understand the extent of the franchisor's rights, especially concerning advertising and marketing, as it can directly affect their business. Franchisees should inquire about Carvel's advertising strategies and how they balance the interests of the brand with those of individual franchisees.