For Carvel, what constitutes a 'Competitive Business' that franchisees are restricted from being involved with?

According to Carvel's 2025 Franchise Disclosure Document, a "Competing Product" is defined within the restrictive covenants of the franchise agreement. Specifically, any products or services that are the same as or similar to any of Carvel's Approved Products are considered a competitive business.

For a prospective Carvel franchisee, this means that during the term of their franchise agreement, they are restricted from engaging in any business activity that offers products or services that directly compete with Carvel's offerings. This restriction is fairly standard in franchising, as franchisors seek to protect their brand and market share. The definition is broad, encompassing not only identical products but also those that are 'similar' to Carvel's approved products.

This clause is important for franchisees to understand, as violating it could lead to legal repercussions or termination of the franchise agreement. Franchisees should carefully review the list of 'Approved Products' in Schedule A of the Franchise Agreement to fully understand the scope of this restriction. If a franchisee is considering diversifying their business interests, they must ensure that these activities do not infringe upon Carvel's defined competitive space.