What criteria must a Carvel Single-Branded Streetside Franchise meet to be considered an 'Eligible Streetside Franchise' for the financial performance representation in Item 19?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
This Item 19 presents information about the financial performance during Fiscal Year 2024 (the fiscal year ended December 29, 2024) of single-branded Full Shoppes located in Streetside Locations ("Single-Branded Streetside Franchises") that (i) reported sales through our designated POS System and (ii) reported sales in all 52 weeks of Fiscal Year 2024 (the "Eligible Streetside Franchises").
This Item 19 does not include data for (i) Shoppes in Other Locations; (ii) Co-Branded Shoppes; or (iii) Express Shoppes, because the format of these Shoppes and related performance can vary substantially from our more typical Single-Branded Streetside Franchise format. In addition, this Item 19 does not include data for Single-Branded Streetside Franchises that do not use our designated POS System (which we have not required existing franchisees to implement), because we do not have access to Net Sales data for such Shoppes. This Item 19 also does not include data for Single-Branded Streetside Franchises that did not report sales in all 52 weeks of Fiscal Year 2024.
TABLE 1: AVERAGE NET SALES BY QUARTILES ELIGIBLE STREETSIDE FRANCHISES FOR FISCAL YEAR 2024
| Provisions | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| w. |
Source: Item 19 — Financial Performance Representations (FDD pages 91–93)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the financial performance representation in Item 19 includes data from 'Eligible Streetside Franchises.' To be considered an 'Eligible Streetside Franchise,' a Carvel location must be a single-branded Full Shoppe located in a streetside location. Additionally, the location must have (i) reported sales through Carvel's designated POS System and (ii) reported sales in all 52 weeks of Fiscal Year 2024, which ended December 29, 2024.
Carvel excludes several types of locations from the 'Eligible Streetside Franchises' category. These exclusions include (i) Shoppes in Other Locations; (ii) Co-Branded Shoppes; (iii) Express Shoppes; (iv) Single-Branded Streetside Franchises that do not use Carvel's designated POS System; and (v) Single-Branded Streetside Franchises that did not report sales in all 52 weeks of Fiscal Year 2024. The FDD states that these exclusions are due to the format and performance of these Shoppes varying substantially from the typical Single-Branded Streetside Franchise format, or due to lack of access to Net Sales data.
The Item 19 data includes 104 (39.1%) of the 266 Single-Branded Streetside Franchises. The remaining 154 Single-Branded Streetside Franchises were excluded because they did not use Carvel's designated POS System for all of Fiscal Year 2024. Four Single-Branded Streetside Franchises were excluded because they were operating and using Carvel's designated POS System but did not report sales in all 52 weeks of Fiscal Year 2024. Four Single-Branded Streetside Franchises were excluded because they opened in Fiscal Year 2024. Three Single-Branded Streetside Franchises closed permanently in Fiscal Year 2024, all of which had been open for at least 12 months prior to closing.
Prospective franchisees should note that the financial performance representation is based on specific criteria and may not be representative of all Carvel locations. It is important to consider the factors that contribute to a location's eligibility and how those factors might apply to their own potential franchise. Carvel encourages prospective franchisees to consult with their own accounting, business, and legal advisors to assist them to prepare their budgets and projections, and to assess the likely or potential financial performance of their franchise.