Is Carvel's designation, pre-approval, or acceptance of a General Contractor considered an endorsement of the General Contractor's performance?

According to Carvel's 2025 Franchise Disclosure Document, Carvel requires franchisees to engage a licensed and insured general contractor that Carvel has designated or pre-approved to complete the build-out of the franchised business. However, Carvel may agree in writing to accept a general contractor proposed by the franchisee at their sole discretion.

The FDD explicitly states that Carvel's designation, pre-approval, or acceptance of a general contractor does not constitute an endorsement of the general contractor's performance. Furthermore, Carvel will not be held liable for the general contractor's performance. This means that while Carvel may provide a list of approved contractors, the franchisee is ultimately responsible for selecting a competent contractor and ensuring the build-out is completed satisfactorily.

This disclaimer is a common practice in franchising, as franchisors want to ensure certain standards are met during construction without assuming liability for the contractor's work. It is crucial for prospective Carvel franchisees to conduct their own due diligence on any general contractor, even if they are on Carvel's approved list. Checking references, reviewing past work, and ensuring proper insurance and licensing are essential steps.

Similarly, Carvel's FDD states that the designation, pre-approval, or acceptance of an architect will not be an endorsement of the architect or render Carvel liable for the architect's performance or compliance with professional design standards or adherence to local codes.