What is considered a 'Competing Product' in the context of a Carvel franchise agreement?

According to the 2025 Carvel Franchise Disclosure Document, a "Competing Product" is defined broadly within the franchise agreement. Specifically, it includes any products or services that are the same as, or similar to, any of the "Approved Products" that Carvel franchisees are authorized to sell. This definition is important because it likely ties into restrictive covenants that may limit a franchisee's ability to engage in other business ventures, either during the term of the franchise agreement or after its termination.

This definition has significant implications for prospective Carvel franchisees. It means that during the term of their franchise agreement, and potentially for a period after, they may be restricted from operating or being involved with any business that offers products or services that compete with Carvel's offerings. The exact scope of these restrictions would be detailed in the restrictive covenants section of the franchise agreement.

It is important for potential franchisees to carefully review Section 15.4, referenced in the FDD, to fully understand the extent of these restrictions. Franchisees should consider how this definition of "Competing Product" and the associated restrictive covenants might impact their future business opportunities and personal financial interests. Understanding these limitations is crucial before entering into a franchise agreement with Carvel.