What is the definition of 'Delivery Kitchens' as it relates to Carvel franchise operations?

According to Carvel's 2025 Franchise Disclosure Document, Delivery Kitchens are defined as kitchens devoted to the preparation of products or Approved Products. These kitchens, often referred to as ghost, dark, or cloud kitchens, are allowed to use Carvel's Marks and can deliver to customers located anywhere. This definition is important for prospective franchisees to understand, as it clarifies the scope of locations and operational models that Carvel may utilize, and how these might interact with a franchisee's own territory and business.

This definition distinguishes Delivery Kitchens from Streetside Locations and Other Locations. Streetside Locations are defined as freestanding, inline, and endcap locations on city streets or in shopping centers, excluding malls and outlet malls. Other Locations encompass a broad range of venues such as airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, universities, and zoos. Delivery Kitchens fall under the umbrella of 'Other Locations'.

The distinction between these location types is significant because Carvel reserves specific rights regarding where it or its affiliates can establish or license franchises. Carvel and its affiliates can establish franchises or company-owned businesses offering similar products or services (a) anywhere outside of a franchisee's Area of Protection, (b) in Other Locations (including Delivery Kitchens) inside or outside the Area of Protection, or (c) in businesses other than Swirl Businesses inside or outside the Area of Protection. This means that while a franchisee may have an Area of Protection for Streetside Locations, Carvel retains the right to operate or franchise Delivery Kitchens within that same area.