What cure period is Carvel granted for monetary defaults under the lease?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ion of Approved Products or any misrepresentation, substitution, or palming off of unapproved products from the Franchised Business.
C. 24 hours after we send you a notice of default, you fail to cure a default related to complying fully with all Laws, unless there is a bona fide dispute as to the violation or legality of a Law and you promptly resort to a court or other appropriate forum having jurisdiction to contest the violation or illegality.
D. 5 calendar days after we send you a notice of default, you fail to cure a default related to (i) selling, bartering, or exchanging, or attempting to sell, barter, or exchange, any Proprietary Goods or Approved Products at wholesale or retail, except as contemplated by this Agreement, (ii) failing to purchase all Goods from us, our affiliates, or our designated Approved Suppliers, or (iii) using any unapproved Goods in the Franchised Business.
E. 10 calendar days after we send you a notice of default, you fail to cure a default for failing to pay promptly when due all debts you owe us or our affiliates, all undisputed debts you owe our Approved Suppliers, and all taxes and other obligations you owe for the Franchised Business, including all federal, state, and local taxes, and all accounts payable of any nature.
F. 10 calendar days after we send you a notice of default, you fail to cure a default relating to obtaining the signing of the Personal Covenants required in Section 15.4 (Restrictive Covenants).
G. 10 calendar days after we send you a notice of default, you fail to cure a default under any mortgage, deed of trust, lease, or sublease of the Accepted Location.
H.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee defaults under any mortgage, deed of trust, lease, or sublease of the Accepted Location, Carvel has the right to terminate the agreement if the franchisee fails to cure the default within 10 calendar days after receiving a notice of default from Carvel. This cure period applies specifically to defaults related to the lease of the business location. This is a relatively short cure period, so franchisees need to be diligent in meeting their lease obligations.
However, Carvel's FDD also states that franchisees must use commercially reasonable efforts to ensure that all Leases include a provision that requires the landlord to concurrently provide Carvel with a copy of any written notice of breach or default under the Lease sent to the franchisee, and which grants to Carvel the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults). This clause is designed to protect Carvel's interest in maintaining the franchise location and gives Carvel an opportunity to step in and resolve any lease issues.
In practice, this means that while Carvel itself provides only a 10-day cure period to the franchisee for lease defaults, the franchisee should negotiate lease terms that allow Carvel an independent right to cure, with a 15-day cure period for monetary defaults. This dual cure mechanism provides an additional layer of protection for both the franchisee and the franchisor, ensuring that lease defaults are addressed promptly and effectively. Prospective franchisees should carefully review their lease agreements and ensure they align with these requirements to avoid potential termination of their franchise agreement.