How far in advance must a Carvel franchisee notify Carvel of a proposed Control Transfer?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.3 Control Transfer.
For a proposed Control Transfer, in addition to any other conditions that we may specify and without limiting in any way our sole and absolute discretion to grant or withhold consent for a proposed Control Transfer, at a minimum, the following conditions must be satisfied (unless waived by us):
- A.
You notify us in writing at least 90 days prior to any proposed Control Transfer and provide all requested information at least 60 days prior to any proposed Control Transfer.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must notify Carvel in writing at least 90 days before any proposed Control Transfer. In addition to providing this initial notice, the franchisee must also provide all requested information to Carvel at least 60 days prior to the proposed Control Transfer. This advance notice allows Carvel ample time to evaluate the proposed transfer and ensure that all conditions are met.
This requirement is in place to allow Carvel to thoroughly vet the potential transferee and ensure they meet the brand's standards for new franchisees. This includes assessing their financial capabilities, operational experience, and overall suitability to uphold the Carvel brand. The 60-day period after receiving all required information is specifically allocated for Carvel to conduct this evaluation.
Failure to provide the required notice and information within the specified timeframes could result in Carvel denying the transfer. Additionally, any transfer attempted without Carvel's prior written consent is considered null and void, potentially leading to a default under the Franchise Agreement and possible termination. Therefore, it is crucial for Carvel franchisees to adhere to these notification requirements when considering a Control Transfer.