factual
Can Carvel change the Payment Due Date for fees, and if so, how?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| If you fail to cancel scheduled training at least 14 days prior to such training or if you are not prepared to successfully complete training, we may charge you the cost of conducting the originally scheduled training (including any training fees and any travel and living expenses incurred by our representatives). |
| 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. |
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. | As incurred | We may charge you this fee if you fail to provide us with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution. The fee is payable for each month or partial month after the deadline, until you provide the documentation. |
| Relocation Fee | 10% of the then current Initial Franchise Fee. | Before your relocation | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended. | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
| Refresh/ Remodel Site Survey and Design Fee | Our then-current fee. Currently, $1,200 to $6,000 depending on the scope of the required changes. | As incurred | You must refresh your Shoppe every five years and must remodel your Shoppe every ten years to meet our then-current Standards. We may require you to pay us, our affiliates, or our designee this fee to inspect your Shoppe and produce a site survey and/or design plan that will comply with these |
| Type of Fee1, 4 | Amount | Date Due | Remarks |
| ----------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| obligations. We may change this fee in any year by no more than the Allowed Adjustment. | |||
| Transfer Fee | 50% of the then current Initial Franchise Fee if it is a Control Transfer; if it is a transfer to a related party or if it is not a Control Transfer, 10% of the then-current Initial Franchise Fee. | At transfer closing | Payable to us if you transfer your Franchise Agreement or Shoppe. A "Control Transfer" occurs if there is a transfer of (i) any interest in the Franchise Agreement, (ii) the Shoppe or substantially all of its assets, (iii) more than 20% of the ownership interests in you, or (iv) any interests that result in a change in control of your entity. See Item 17.k for the definition of "transfer." |
| Renewal Fee | 20% of the then current Initial Franchise Fee for the type of Shoppe you will operate. | Before we sign renewal Franchise Agreement | Payable to us if you enter into a renewal term. |
| Computer Systems Fee | A reasonable fee, which will vary based on the services provided. | As needed | Paid to contractors, or us or our affiliates, as applicable. We may charge a reasonable systems fee for modifications and enhancements and other maintenance and support services related to the Computer System (as defined in Item 11), which will not exceed 110% of our actual costs and expenses. The amount for upgrades and maintenance varies based on the extent of the upgrade or services provided. |
| POS System License and Lease Fees | Our then-current fee. Currently, $159 to $397 per month if you purchase the POS System under the CapEx Program and $216 to $442 per month if you lease the POS System under the HaaS Program | As incurred | We will pay, on your behalf, our designated POS System vendor the monthly license and lease fees that are required for you to use the POS System. The fee under the CapEx Program includes the software license fee. The fee under the HaaS Program includes the software license fee and the hardware lease fee. The fees are equal to our actual costs and expenses plus a 0.5% administrative fee to offset the costs we incur administering the program. These fees may change from time to time based on the fees charged by the third-party vendor. |
| POS System Support Fee | Our then-current fee. Currently, between $70 and $250 per month. | As incurred | You must remit this fee to us or our affiliate (or a third-party vendor approved by us) for software and hardware support for your POS System. The support service includes helpdesk support, trouble shooting, menu management, third-party integrations, and |
| Type of Fee1, 4 | Amount | Date Due | Remarks |
| --------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| collection of sales data from your POS System overnight. We may change this fee in any year by no more than the Allowed Adjustment. | |||
| POS System Administration Fee | Our then-current fee. Currently, between $1,500 to $2,000. | At transfer closing | Payable to us for the project management services that we may, in our sole discretion, provide related to coordinating the onboarding and reconfiguration of the POS System after a transfer occurs. This fee also applies prior to the opening of a new Shoppe – see Item 5. We may change this fee in any year by no more than the Allowed Adjustment. |
| Non-GoTo Foods Portfolio POS Menu Setup | A reasonable fee. Currently, $500 per day. | As incurred | If we permit you to operate a co-branded location with a brand that is not in the GoTo Foods Portfolio and such brands' sales are processed through the POS System, we may charge you a fee to add the other brands' menu to the POS System or to subsequently modify it. We may change this fee in any year by no more than the Allowed Adjustment. |
| Back Office and Polling Software Fee | A reasonable fee. Currently, not charged. Estimated to be between $100 and $200 per month. | As incurred | Currently we do not, but in the future we may, require you to remit this fee to us, our affiliate, or a third-party vendor that provides the back office and polling software for your Computer System. We may change this fee in any year by no more than the Allowed Adjustment. |
| Credit Card Fees | Transaction fees estimated to be from 2.5% to 5% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing. | As incurred | We may require that you use a specific credit card processing company and/or gateway. These fees are subject to change, but any fees that we or our affiliates charge will not exceed 110% of our or our affiliates' actual costs and expenses. |
| Information Security and Compliance Fees | Currently, not charged by us or our affiliates. We may charge a fee up to 110% of our or our affiliates' actual costs and expenses. | As incurred | You must remit this fee to us, our affiliate, or a third party vendor. We may require that you use one or more Approved Suppliers to provide credit card data and security services that are consistent with PCI DSS requirements, including a managed firewall, quarterly network scans, endpoint detection and response solutions, and managed Wi-Fi. We may also require you to obtain data breach protection insurance provided by such Approved Supplier. We require that you submit annually proof of your PCI DSS compliance status. We may also charge an administrative fee to review your systems and verify |
| Type of Fee1, 4 | Amount | Date Due | Remarks |
| ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, while the document specifies the due dates for various fees, it does not explicitly state whether Carvel has the right to unilaterally change these due dates. The 'Date Due' column in Item 6 outlines when each fee is payable, such as 'As incurred' for the Learning Management System License Fee, Sublease Administration Fee, and Lease Renewal/Extension Review Fee, or 'Before your relocation' for the Relocation Fee.
For certain fees, such as the Learning Management System License Fee, Sublease Administration Fee, Lease Renewal/ Extension Review Fee, Refresh/Remodel Site Survey and Design Fee, POS System Support Fee, Non-GoTo Foods Portfolio POS Menu Setup, and Back Office and Polling Software Fee, Carvel specifies that they "may change this fee in any year by no more than the Allowed Adjustment." However, this statement refers to the amount of the fee, not the due date.
Since the FDD does not provide explicit information regarding Carvel's ability to alter the payment due dates for fees, it is important for a prospective franchisee to seek clarification from Carvel regarding this matter. Understanding whether these dates are fixed or subject to change is crucial for financial planning and managing cash flow. A potential franchisee should ask Carvel to clarify under what circumstances, if any, the payment due dates for the various fees could be modified.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.