What does Carvel expect a franchisee to do regarding the suitability of a proposed site?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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 expects franchisees to retain an independent expert to evaluate the suitability of any proposed site for a Carvel Shoppe. Additionally, franchisees are expected to conduct their own independent investigation of the site. Carvel disclaims any responsibility for the suitability of the accepted location, and its acceptance of a site is based only on the site satisfying Carvel's minimum site selection criteria. Carvel's acceptance should not be construed as a representation or warranty that the Shoppe at that location will be successful.
This means that while Carvel reviews and approves the site based on its criteria, the franchisee bears the ultimate responsibility for ensuring the location is viable for their business. It is crucial for prospective franchisees to conduct thorough due diligence, including market research, traffic analysis, and competitor assessment, beyond what Carvel provides.
Franchisees should consider this a critical step in their investment. Engaging an independent expert can provide valuable insights and help mitigate the risk of choosing an unsuitable location. This requirement underscores that while Carvel offers support in site selection, the franchisee is ultimately accountable for the location's success.