What factors does Carvel consider when determining whether to accept a site?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
o 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.
1. Site Selection Review. We will review the location you select for your Shoppe and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection anal
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 will review a franchisee's selected location and accept it if it meets their minimum site criteria. The FDD specifies that Carvel may require a franchisee to obtain a site selection analysis from an approved supplier, costing an estimated $2,500 to $5,000. This analysis may include factors such as traffic patterns, demographics, and local competition. Carvel's acceptance of a site does not guarantee the success of the Shoppe at that location.
Specifically, Carvel considers factors such as population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Carvel Shoppes. The FDD indicates there is no specified time limit for Carvel to approve or disapprove a site. However, the franchisee is responsible for independently evaluating the suitability of the proposed site.
This site selection process is typical in the franchise industry, where franchisors want to ensure that new locations have the best chance of success, protecting both the franchisee's investment and the brand's reputation. Prospective Carvel franchisees should carefully consider these site selection criteria and be prepared to invest in a professional site selection analysis to increase the likelihood of Carvel's approval.