Which FDD item outlines the site selection and acquisition/lease obligations for a Carvel franchisee operating under the 'Schedule' model?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Schedule | Schedule Truck | Shoppe | Schedule | |||
|---|---|---|---|---|---|---|
| Schedule | Schedule | |||||
| a. Site selection and | 5 | 20.G. 20.G., H. | Not Not | Not | 5, 6, 7, 8, | |
| acquisition/ lease | applicable | applicable | applicable | 11 and 12 |
Source: Item 9 — Franchisee's Obligations (FDD pages 56–58)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including site selection and acquisition/lease obligations, varying by the specific 'Schedule' attached to the Franchise Agreement. The table provided in Item 9 details which sections of the agreement address these obligations for different franchise models. Specifically, for site selection and acquisition/lease, the 'Schedule' model refers to sections 5, 6, 7, 8, 11, and 12 of the franchise agreement.
Item 5 within the Franchise Agreement, as referenced in Item 23, further details the site identification and acquisition process. It emphasizes that the franchisee must operate only at the 'Accepted Location' and obtain Carvel's prior written consent for any co-branding. Carvel may assist in site selection but isn't obligated to do so, and franchisees should conduct their own independent investigation of any proposed location. The acceptance of a location by Carvel is based solely on meeting minimum site selection criteria and doesn't guarantee the business's success.
Item 5 also specifies that if an 'Accepted Location' isn't agreed upon when signing the Franchise Agreement, the franchisee must select a location that meets Carvel's site selection criteria within a specified area. The franchisee is responsible for providing all requested materials, including a site plan, for evaluation. Carvel will then provide its acceptance or non-acceptance within 15 days of receiving the materials. Upon acceptance, the franchisee must sign standard documentation, including a general release, to document the 'Accepted Location'.
In practical terms, this means a prospective Carvel franchisee operating under a 'Schedule' model needs to carefully review sections 5, 6, 7, 8, 11, and 12 of the Franchise Agreement to fully understand their obligations regarding site selection and acquisition. They should also be prepared to conduct thorough due diligence on potential locations and understand that Carvel's approval doesn't guarantee success. The franchisee should also be aware of the deadlines for site approval, as outlined in Schedule A and section 6.5 of the agreement.