What is the Construction Start Deadline for a Carvel franchise, after the Franchise Agreement is signed?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
i) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location within 150 days after you sign the Franchise Agreement (the "Site Approval Deadline"). You must submit to us a complete set of final Architectural Plans at least 30 days before the Construction Start Deadline.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must begin construction at the accepted location within 270 days after Carvel signs the Franchise Agreement. This is referred to as the "Construction Start Deadline." Franchisees are also required to submit a complete set of final Architectural Plans to Carvel at least 30 days before this deadline.
Missing the Construction Start Deadline can have serious repercussions. Carvel may terminate the Franchise Agreement without refunding the initial franchise fee if the franchisee fails to meet this deadline and does not rectify the failure within 30 days. However, Carvel retains the discretion to grant an extension to this deadline upon the franchisee's request, potentially for a fee.
Therefore, prospective Carvel franchisees should carefully consider the timeline for site selection, lease negotiation, architectural planning, and construction to ensure they can meet the Construction Start Deadline. They should also factor in the time required for Carvel's approvals and any potential delays in obtaining permits or completing construction. Understanding these deadlines and potential consequences is crucial for successfully launching a Carvel franchise.