What is the current monthly Sublease Administration Fee for a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| We may require you to pay the training fee again for the rescheduled training. | |||
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. | As incurred | We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment. |
| Sublease Administration Fee | Our then-current fee. Currently, $200 per month. | As incurred | If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Sublease Administration Fee is currently $200 per month. This fee is incurred if a franchisee subleases a Shoppe directly from Carvel. The purpose of the fee is to compensate Carvel for their administrative expenses related to the sublease agreement.
It's important to note that this $200 monthly fee is in addition to any other fees that may be required under the sublease agreement itself. These additional fees could include rent, insurance costs, public utility charges, late fees, and expenses for any alterations or improvements made to the property. Therefore, franchisees should carefully review the terms of the sublease to understand the full scope of their financial obligations.
Carvel also retains the right to change the Sublease Administration Fee in any year, although any such change is subject to an "Allowed Adjustment," which is not defined in this excerpt. Prospective franchisees should inquire about the specifics of this "Allowed Adjustment" to understand the potential for future fee increases. Understanding the potential for increases in this fee is crucial for accurate financial planning.