Is a copy of the guaranty of GoTo Systems attached as an exhibit to the Carvel Disclosure Document?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 29, 2024 and December 31, 2023 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024 and December 31, 2023. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — Financial Statements (FDD page 99)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the audited financial statements of GoTo Systems, Carvel's parent company, are included as Exhibit A. GoTo Systems guarantees Carvel's obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A to the disclosure document. This indicates that GoTo Systems is financially backing Carvel's commitments to its franchisees.
This arrangement is beneficial for prospective Carvel franchisees because it provides an additional layer of financial security. If Carvel is unable to meet its obligations under the franchise agreement, franchisees can seek recourse from GoTo Systems, the parent company. This guaranty reduces the risk for franchisees, as it ensures that there is a financially stable entity ultimately responsible for upholding the terms of the franchise agreement.
It is important to note that while GoTo Systems guarantees Carvel's obligations, GoTo Foods does not. The FDD states that GoTo Foods will be providing required support and services to franchisees under a management agreement. The audited financial statements of GoTo Foods are attached as Exhibit A for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement and does not guarantee Carvel's obligations.