What is the current monthly Sublease Administration Fee for a Carvel franchisee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| 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, franchisees who sublease their shop from Carvel are required to pay a Sublease Administration Fee. This fee is currently set at $200 per month. This fee is intended to compensate Carvel for the administrative expenses they incur as part of the sublease arrangement.
It's important to note that this Sublease Administration 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 related to alterations or improvements made to the shop. Therefore, franchisees need to factor in all of these potential costs when evaluating the financial implications of subleasing a Carvel shop.
Carvel retains the right to modify the Sublease Administration Fee in any given year, but any such change is subject to an "Allowed Adjustment," which is not defined here. This means that while the fee can be adjusted, there are likely some limitations on how much it can increase in a single year. Prospective franchisees should inquire about the specific details of the "Allowed Adjustment" to understand the potential for future fee increases.