How does Carvel draft Comprehensive Support Fees from the franchisee's account?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
vices required under this Agreement.
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- Service Fees. Franchisee shall pay Company the Comprehensive Support Fee and/or Billable Support Fee (collectively, the "Service Fees"), as applicable, for the Support Services provided by Company. Service Fees are exclusive of, and Franchisee will pay, any applicable sales, use, service, value added or like taxes. In the event of a Franchisee Default (as defined below), Company reserves the right, but not the obligation, to suspend part or all of the Support Services until such Franchisee Default is cured; provided however, that Franchisee shall continue to pay Service Fees, during the Term of the Agreement notwithstanding any suspension of Support Services due to a Franchisee Default.
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- Amendments to Schedule A. Company reserves the right, but not the obligation, from time to time, to review the Support Services and Service Fees provided under this Agreement and, in its sole discretion, to amend Schedule A to reflect a change in Support Services or Service Fees, provided that any changes to the fees in any calendar year will not exceed, at our option, (a) 50% of the fee that is in effect at the start of the calendar year or (b) the increase in our or our affiliates' actual costs and expenses to provide the Support Services to you. Company shall provide Franchisee with notice of any amendment to Schedule A via e-mail or update to the Manuals at least ninety (90) days prior to such amendment taking effect.
6. Payment.
- a. Electronic Funds Transfer; Payment Date. Payments of Comprehensive Support Fees will be drafted by Franchisor on behalf of Company from Franchisee's Designated Bank Account under Franchisor's electronic funds transfer or draft system ("EFT") one time per month on the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month (the "Payment Date"). Payments shall commence on the Payment Date of the first (1st) full month following the Opening Date. Time is of the essence in the performance of all payment obligations by Franchisee. Company may change credit or payment terms at any time when, in Company's opinion, Franchisee's financial condition, previous payment record, or the nature of Franchisee's relationship with Company so warrants.
- b. Temporary Closure.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Comprehensive Support Fees are collected via Electronic Funds Transfer (EFT). Carvel's Franchisor will draft these fees from the franchisee's Designated Bank Account, which is the account already on file for royalty and other fee payments. This drafting occurs once per month, on the same Payment Date used for royalties and other fees under the Franchise Agreement. Payments start on the Payment Date of the first full month following the store's Opening Date.
Carvel emphasizes that timely payment is crucial. Franchisees must maintain sufficient funds in their Designated Bank Account to cover the Comprehensive Support Fees, along with any other amounts drafted via EFT. If there are insufficient funds, Carvel reserves the right to charge the franchisee for the bank's return costs and an administrative fee to cover the costs of addressing the nonpayment. This administrative fee is in addition to any interest on the amount due.
In the event that a Carvel store is temporarily closed and approved by the company, payments of Comprehensive Support Fees will be suspended. This suspension begins on the Payment Date of the first full month following the closure date, as determined and approved by the Franchisor. Payments are reinstated on the Payment Date of the first full month following the date the closure ends, also as determined and approved by the Franchisor. However, Carvel reserves the right to reinstate payments during the closure if the franchisee requests and receives Support Services during that time. The franchisee is responsible for notifying and receiving Franchisor's approval of any temporary closure.