Besides offering franchises, what other sales activities are Carvel and its affiliates involved in?

According to Carvel's 2025 Franchise Disclosure Document, in addition to offering franchises, Carvel and its affiliates are involved in selling products to wholesale accounts. These accounts include supermarkets, convenience stores, club stores, and other similar retail outlets that offer Carvel products at retail. Carvel also sells products to unaffiliated branded restaurants and retail stores, allowing them to sell one or more Carvel branded products.

This means that prospective Carvel franchisees may face competition not only from other ice cream shops and frozen dessert sellers but also from other retail outlets and restaurants that carry Carvel products. The FDD specifies that franchisees are not entitled to additional rights or compensation should Carvel or its affiliates sell Carvel products through these other channels.

This sales strategy could impact a franchisee's potential revenue, as customers might opt to purchase Carvel products from more convenient locations like their local grocery store instead of visiting a dedicated Carvel Shoppe. Therefore, it is important for potential franchisees to consider the existing market saturation of Carvel products in their desired location and factor this into their business plan. Understanding the extent of wholesale and retail distribution in their area is crucial for assessing the potential profitability and competitive landscape of a Carvel franchise.