Besides operating the Carvel Franchised Business at the Accepted Location, under what circumstances can I use the Marks or the System at another location?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. GRANT OF FRANCHISE
- 1.1 Grant of Franchise. Subject to the terms of this Agreement, we grant to you, and you accept, a non-exclusive license to operate one Business using the Marks and the System (collectively, your "Franchised Business"). The Franchised Business will be operated only at the location specified in Schedule A (the "Accepted Location") or, if we have not yet accepted a site for the Franchised Business as of the date of this Agreement, at a location that we have accepted in accordance with this Agreement within the geographic area specified in Schedule A (the "Site Selection Area").
- 1.2 Restrictions. You have no right to (i) sublicense the Marks or the System to any other person or Entity (as defined below), (ii) use the Marks or the System at any location other than the Accepted Location, except as otherwise provided in Section 4.3 (Catering Services and Delivery Services) or as otherwise approved in writing, or (iii) to use the Marks or the System in any wholesale, e-commerce, or other channel of distribution besides the operation of the Franchised Business at the Accepted Location.
- 1.3 Acceptance of License. You hereby accept the license granted in Section 1.1 (Grant of Franchise) and agree to operate the Franchised Business according to the provisions of this Agreement for the entire Term, as defined in Section 2.2 (Renewal Term).
1.4 Ownership and Guaranty.
- A.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee's use of the Marks and System is generally restricted to the Accepted Location. However, there are exceptions. The franchisee can use the Marks and System for Catering Services and Delivery Services as described in Section 4.3 of the franchise agreement. Additionally, Carvel may provide prior written consent allowing the franchisee to operate away from the Accepted Location.
If Carvel consents to operations away from the franchisee's Accepted Location, the franchisee will be required to execute a separate agreement. This separate agreement will concern the franchisee's mobile or satellite business operations. The agreement may include limitations on the type of activities that the franchisee may conduct. It may also include additional or different financial terms than the original franchise agreement.
It is important to note that without prior written consent from Carvel, the franchisee cannot conduct any sale of Approved Products using the Marks at any location other than the Accepted Location, except for Catering Services and Delivery Services. A prospective franchisee should discuss with Carvel the specific conditions and requirements for obtaining consent to operate at other locations, as well as the terms of the separate agreement that would govern such operations.