How does the business experience of Jim Holthouser as described in Item 2 relate to the management agreement between Carvel and GoTo Foods mentioned in Item 11?

According to Carvel's 2025 Franchise Disclosure Document, Jim Holthouser's business experience is directly related to the management agreement between Carvel and GoTo Foods. Specifically, Jim Holthouser has been the Chief Executive Officer of Carvel since February 2020. Simultaneously, since February 2020, he has also served as the President of GoTo Systems, the Chief Executive Officer of GoTo Foods, and a member of the Board of Managers for GoTo Foods. This dual role indicates that the management agreement leverages the expertise and oversight of GoTo Foods' leadership, specifically Jim Holthouser, to provide support and services to Carvel franchisees.

This arrangement means that GoTo Foods, under the leadership of Jim Holthouser, is responsible for providing certain support and services to Carvel franchisees, as outlined in the management agreement. Carvel, however, remains responsible for ensuring that all services promised under the Franchise Agreement are performed, regardless of whether GoTo Foods or its affiliates carry out those services. This structure ensures that Carvel franchisees receive the necessary support while maintaining accountability with Carvel itself.

For a prospective Carvel franchisee, this relationship signifies that the operational support and strategic direction of their franchise are influenced by the leadership of both Carvel and GoTo Foods. The franchisee benefits from the resources and expertise of a larger entity (GoTo Foods) while still being under the direct responsibility of Carvel. This dual structure could provide a more robust support system, but it also means that changes in GoTo Foods' management or priorities could indirectly affect the Carvel franchise system. Therefore, understanding the dynamics between Carvel and GoTo Foods is crucial for any potential franchisee.