factual

Who has Carvel entered into a management agreement with to provide support and services to Carvel franchisees?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

As noted in Item 1, we have entered into a management agreement with GoTo Foods for it to provide certain support and services to Carvel franchisees. GoTo Foods may delegate certain of these responsibilities to CL, the previous franchisor of Carvel franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.

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 has entered into a management agreement with GoTo Foods to provide certain support and services to its franchisees. GoTo Foods may delegate some of these responsibilities to CL, the previous franchisor of Carvel franchises, or other affiliates. However, Carvel remains responsible for all support and services required under the Franchise Agreement.

This agreement means that while GoTo Foods will handle many of the day-to-day support functions for Carvel franchisees, Carvel itself is ultimately accountable for ensuring that franchisees receive the assistance they need as outlined in the franchise agreement. This structure is not uncommon in franchising, where a parent company might outsource certain operational tasks to a specialized management company.

For a prospective franchisee, this arrangement implies that their direct interactions for support might be with GoTo Foods or CL representatives. However, any concerns or issues that are not adequately addressed can be escalated to Carvel, as they hold the primary responsibility. It is important for potential franchisees to understand the roles and responsibilities of each entity involved to ensure they know who to contact for specific types of support and how to navigate the support system effectively.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.