Does the Co-Branded Shoppe Schedule affect the length of the Carvel franchise term?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the | FA: 2.1 | 20 years |
| franchise term | ES, HES, ICS: | 5 years for Express Shoppes, Hosted Express |
| 20.B. | Shoppes, and Ice Cream Trucks. | |
| b. Renewal or extension | FA: 2.2 | One 20-year renewal term if you comply with our |
| of the term | renewal requirements | |
| ES, HES: 20.C. | One five-year renewal term if you comply with our | |
| renewal requirements for Express Shoppes and | ||
| Hosted Express Shoppes. | ||
| ICS: 20.C. | If you operate an Ice Cream Truck, we may, in our | |
| sole discretion, offer you one additional five-year | ||
| renewal term. | ||
| c. Requirements for you renew or extend | FA: 3.2 | You must satisfy these requirements to enter into a renewal term: |
| ES, HES, ICS: | a. Timely request a renewal term | |
| 20.D. and 20.E. | b. Complete renewal application. | |
| CBS: 20.C. | c. | |
| Have been in substantial compliance with | ||
| Franchise Agreement. | ||
| d. Remodel, refurbish and renovate the Shoppe (or | ||
| make upgrades to the Ice Cream Truck, if applicable). | ||
| e. Secure right to operate at Accepted Location or | ||
| relocate the Shoppe if necessary to meet our then | ||
| current Standards | ||
| f. | ||
| Sign and return your Renewal Franchise | ||
| Agreement (which may be materially different from | ||
| the terms contained in the Franchise Agreement | ||
| attached to this Disclosure Document). | ||
| g. Pay the Renewal Fee | ||
| h. You and your guarantors and owners must sign a | ||
| general release. | ||
| i. If you operate a Co-Branded Shoppe, you must | ||
| secure the right from the Co-Branded Franchisor to | ||
| continue to operate the Co-Branded Franchise. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 84–91)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Co-Branded Shoppe schedule does not directly affect the length of the initial franchise term, but it does impact the requirements for renewal. The standard Carvel franchise agreement lasts for 20 years, while agreements for Express Shoppes, Hosted Express Shoppes, and Ice Cream Trucks have a shorter initial term of 5 years.
For standard Carvel franchises, there is one 20-year renewal term available if the franchisee meets Carvel's renewal requirements. For Express Shoppes and Hosted Express Shoppes, there is one five-year renewal term available if the franchisee meets Carvel's renewal requirements. For Ice Cream Truck franchises, Carvel may offer one additional five-year renewal term at its sole discretion.
To renew a franchise, all franchisees must meet certain conditions, including timely requesting a renewal term, completing a renewal application, and being in substantial compliance with the Franchise Agreement. Additionally, franchisees must remodel, refurbish, and renovate the Shoppe (or make upgrades to the Ice Cream Truck, if applicable), secure the right to operate at the Accepted Location or relocate the Shoppe if necessary to meet Carvel's then-current standards, sign and return the Renewal Franchise Agreement, pay the Renewal Fee, and sign a general release.
Specifically for Co-Branded Shoppes, the franchisee must also secure the right from the Co-Branded Franchisor to continue to operate the Co-Branded Franchise to be eligible for renewal. Therefore, while the Co-Branded Shoppe schedule doesn't change the initial term length, maintaining a good relationship with the co-branded franchisor is essential for securing renewal.