What constitutes misuse of the Marks that could lead to termination of the Carvel franchise agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to use the Marks applies only to the Franchised Business operated at the Accepted Location as expressly provided in this Agreement, including advertising related to the Franchised Business.
You may only use in your Franchised Business the Marks we designate, and only in compliance with written rules that we prescribe from time to time.
Your limited license extends only to use of the Marks in accordance with (i) all applicable standards, operating procedures, policies, and guidelines that we prescribe—and from time to time amend during the duration of this Agreement, including those set forth in the Manuals and any other publications, if any, dedicated to proper use of the Marks; and (ii) all applicable Laws pertaining to advertising and marketing, including federal and state laws pertaining to telemarketing (including the Telephone Consumer Protection Act (the "TCPA")), false advertising, unfair competition and unfair practices.
You may not use any Mark or any words or designations similar to the Marks (i) as part of any corporate or legal business name, (ii) with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we have licensed to you), (iii) in selling any unauthorized services or products, (iv) as part of any domain name, electronic address, metatag, search engine keyword, social media account, or otherwise in connection with any website or other electronic medium without our consent, or (v) in any other manner we have not expressly authorized in writing.
No materials on which any of the Marks appears will be used by you without our prior written approval, which may be revoked at any time upon reasonable notice to you.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, several actions related to the brand's Marks could lead to termination of the franchise agreement. Carvel retains ownership of its Marks, and the franchisee's right to use them is limited to the operation of the Franchised Business at the Accepted Location, including related advertising.
The franchisee must use only the Marks designated by Carvel and adhere to all written rules and standards provided, including those in the manuals and other publications. This usage must also comply with all applicable laws related to advertising and marketing.
Specifically, a franchisee cannot use any Mark or similar designations as part of a corporate or legal business name, with unauthorized prefixes or suffixes, in selling unauthorized products or services, as part of a domain name or social media account without consent, or in any other way not expressly authorized in writing. Furthermore, no materials displaying the Marks can be used without Carvel's prior written approval, which can be revoked with reasonable notice. These stipulations ensure that Carvel maintains strict control over its brand identity and reputation, and any deviation could result in the termination of the franchise agreement.