What is the definition of 'Streetside Locations' where Carvel will not establish or license a Swirl Business within the Area of Protection?

According to Carvel's 2025 Franchise Disclosure Document, 'Streetside Locations' are defined in the context of the Area of Protection granted to a franchisee. Carvel will not establish or operate, nor license any other person to establish or operate, a Swirl Business at a Streetside Location within the Area of Protection during the term of the agreement.

Streetside Locations specifically include freestanding, inline, and endcap locations found on city streets or in shopping centers. The shopping centers encompassed by this definition include power centers, lifestyle centers, and strip centers. However, the definition explicitly excludes malls, whether enclosed or open air, as well as outlet malls and centers. This means that while a Carvel franchisee has certain protections in streetside locations, Carvel retains the right to establish or license Swirl Businesses in other types of locations, even within the franchisee's Area of Protection.

This distinction is important for prospective franchisees to understand, as it clarifies the scope of their protected territory. While the Area of Protection offers some exclusivity, it is limited to specific types of locations, leaving room for Carvel to expand its presence through other channels and venues. Franchisees should carefully consider the implications of this limited protection and evaluate the potential for competition from other Carvel locations in non-streetside venues when assessing the viability of their franchise.