What is the deadline for site approval after the effective date for a Carvel franchise, as outlined in Section 6.5.A?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| EVENT | COMPLETION DEADLINE |
|---|---|
| Site Approval Deadline (Section 6.5.A.) | Within 60 days after the Effective Date |
| Construction Start Deadline (Section 6.5.B.) | Within 90 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 180 days after the Effective Date |
| Site Approval Deadline (Section 6.5.A.) | Not applicable |
|---|---|
| Construction Start Deadline (Section 6.5.B.) | Within 90 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 180 days after the Effective Date |
| EVENT | COMPLETION DEADLINE |
|---|---|
| Site Approval Deadline (Section 6.5.A.) | Within 150 days after the Effective Date |
| Construction Start Deadline (Section 6.5.B.) | Within 270 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 360 days after the Effective Date |
6.5 Opening and Development Deadlines.
- A. Site Approval Deadline. You will have until the deadline specified in Schedule A to (i) identify the Accepted Location, (ii) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location (the "Site Approval Deadline").
- B. Construction Start Deadline. You must begin the construction and equipping of the Franchised Business by the deadline specified in Schedule A (the "Construction Start Deadline").
- C. Opening Deadline. You must open the Franchised Business by the deadline specified in Schedule A (the "Opening Deadline"). You must notify us of your proposed Opening Date at least 30 days in advance. We have the right to inspect your Franchised Business and take other measures we deem appropriate to determine whether you have complied with our Standards and are ready to begin operations. You must not begin operations until we authorize you to do so in writing.
- D. Failure to Meet Deadlines. If you are unable to meet the Site Approval Deadline, the Construction Start Deadline, or the Opening Deadline, you may request an extension before the expiration of any missed deadline. We have the right to require you to pay a $2,500 extension fee and to sign a general release, if we agree to modify (or if you miss) any of the deadlines. We are not obligated to extend any deadlines. If (i) you fail to cure your failure to meet the Site Approval Deadline or the Construction Start Deadline within 30 calendar days after we send you notice of such default or (ii) you do not meet the Opening Deadline, we may terminate this Agreement, as provided in Sections 17.2.I and 17.3.J.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the deadline for site approval, as detailed in Section 6.5.A, varies depending on the specific agreement. For some franchisees, the Site Approval Deadline is within 60 days after the Effective Date. However, for other franchisees, the Site Approval Deadline is within 150 days after the Effective Date. In some instances, the Site Approval Deadline may not be applicable.
These deadlines are critical for prospective Carvel franchisees because failing to meet them can have significant consequences. Carvel outlines in Section 6.5.D that if a franchisee is unable to meet the Site Approval Deadline, they may request an extension before the deadline expires. Carvel has the right to require a $2,500 extension fee and a signed general release if they agree to modify the deadline. However, Carvel is not obligated to extend the deadline.
Furthermore, if the franchisee fails to rectify the failure to meet the Site Approval Deadline within 30 calendar days after receiving notice from Carvel, Carvel may terminate the Franchise Agreement, as stated in Sections 17.2.I and 17.3.J. Therefore, understanding the specific deadlines and requirements outlined in Schedule A of the Franchise Agreement is essential for any prospective Carvel franchisee to avoid potential penalties or termination of the agreement.