Does Carvel disclaim any responsibility for the suitability of the Accepted Location?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Shoppes, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location. Our acceptance of the site is based on the site satisfying our minimum site selection criteria only and will not be construed as a representation or warranty that the Shoppe located at the Accepted Location will be successful. (Franchise Agreement, Section 5.3)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel disclaims responsibility for the suitability of the location that they accept. While Carvel may assist in selecting a site, it is not obligated to do so. Carvel expects franchisees to retain an independent expert to evaluate the suitability of any proposed site. Carvel's acceptance of a site is based only on the site satisfying their minimum criteria. Carvel makes no representation or warranty that the Carvel Shoppe at the accepted location will be successful.
This disclaimer means that while Carvel reviews and accepts the location, the franchisee bears the ultimate responsibility for ensuring the site is viable for their business. Prospective franchisees should not rely solely on Carvel's approval as a guarantee of success. It is essential for franchisees to conduct their own thorough due diligence, including market research and financial projections, before committing to a location.
This is a fairly standard practice in the franchise industry, as franchisors often provide site selection assistance but cannot guarantee the success of any particular location due to varying local market conditions and business acumen of the franchisee. Franchisees need to protect their investment by independently verifying the location's potential.