What is the dependency between the Relocation Fee and the Relocation Extension Fee for Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Relocation Fee | 10% of the then- current Initial Franchise Fee. | Before your relocation | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended. | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Relocation Extension Fee is dependent on the Relocation Fee. If a Carvel franchisee relocates to a new site that Carvel has approved, they must pay a Relocation Fee, which is 10% of the then-current Initial Franchise Fee.
In addition to the Relocation Fee, a Carvel franchisee must also pay a Relocation Extension Fee of $1,500 per year if Carvel agrees to extend the term of the Franchise Agreement (or enter into a new Franchise Agreement) to match the term of the new lease at the relocated site. This fee is paid before Carvel signs the relocation Franchise Agreement.
Therefore, the Relocation Extension Fee is only applicable if the franchisee is relocating and also requires an extension of their franchise agreement term to align with the new lease term. The franchisee will not be charged the Relocation Extension Fee if they do not extend their term.