What are some examples of expenses covered by the 'Additional Funds 3 Months' estimate for a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- Additional Funds 3 Months. This estimates the additional funds you may need to cover expenses you will incur before your Shoppe opens and in its first three months of operation. These expenses may include, without limitation, employee salaries, wages, and benefits, payroll taxes (including payroll to cover the pre-opening training period for your staff), Royalty Fees, Advertising Contributions, ongoing fees due to the Co-Branded Franchisor (if you operate a Co-Branded Shoppe), additional advertising expenses, additional inventory, miscellaneous supplies and equipment, rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items. We have based these figures on our experience franchising Shoppes and our affiliate's experience opening and operating Shoppes. You may incur other categories of expenses or expenses in excess of this estimate.
Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the 'Additional Funds 3 Months' estimate covers expenses incurred before the Shoppe opens and during its first three months of operation. These expenses can include employee salaries, wages, and benefits, as well as payroll taxes, which may include the pre-opening training period for staff.
Other potential expenses covered by this estimate include Royalty Fees, Advertising Contributions, and ongoing fees if the franchisee operates a Co-Branded Shoppe. Additional advertising expenses and inventory costs can also be covered, along with miscellaneous supplies and equipment. Rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items are also included in the estimate.
Carvel bases these figures on their experience franchising Shoppes and their affiliate's experience opening and operating Shoppes. However, the FDD notes that franchisees may incur other categories of expenses or expenses exceeding this estimate, so it's important for prospective franchisees to carefully consider their individual circumstances and financial planning.