Besides the Sublease Administration Fee, what other fees might a Carvel franchisee be responsible for under the sublease?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| We may require you to pay the training fee again for the rescheduled training. | |||
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. | As incurred | We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment. |
| Sublease Administration Fee | Our then-current fee. Currently, $200 per month. | As incurred | If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee subleases a Shoppe from Carvel, they are responsible for fees under the sublease in addition to the Sublease Administration Fee. These additional fees include rent, insurance, public utility charges, late fees, alterations, and improvements. The Sublease Administration Fee is currently $200 per month.
Carvel may change the Sublease Administration Fee each year, but the increase cannot exceed the Allowed Adjustment. The FDD does not define "Allowed Adjustment" in the context of the Sublease Administration Fee, so it is important to understand how much this fee could increase each year.
Prospective Carvel franchisees should carefully review the sublease agreement to fully understand all the costs associated with subleasing a Shoppe from Carvel. Understanding the potential costs of rent, insurance, public utility charges, late fees, alterations, and improvements is crucial for assessing the financial viability of the franchise.