Does the Carvel FDD outline any financial thresholds related to revenue or profitability that Carvel franchisees must meet to maintain good standing with affiliated brands?

The 2025 Carvel FDD does not explicitly state any specific financial thresholds (revenue or profitability) that Carvel franchisees must meet to maintain good standing with affiliated brands. However, it does mention that franchisees must be in full compliance with all Franchise Agreements between them and Carvel to receive a referral fee. This implies that non-compliance with the Franchise Agreement could impact a franchisee's standing.

For franchisees operating a Cinnabon Co-Branded Shoppe or Swirl Shoppe, the FDD mentions that they must also purchase a Cinnabon franchise and sign a Cinnabon franchise agreement. The terms of the Cinnabon franchise, including any financial performance standards, are disclosed in the Cinnabon Disclosure Document, which prospective franchisees must obtain separately from Cinnabon. Carvel will not grant the right to operate a Co-Branded Shoppe or Swirl Shoppe unless Cinnabon agrees to offer a Cinnabon franchise and permit its operation at a co-branded location.

While the Carvel FDD does not detail specific financial benchmarks for maintaining good standing, it emphasizes compliance with the Franchise Agreement. Prospective franchisees should carefully review the Franchise Agreement for any clauses related to financial performance or reporting requirements that could affect their standing. Additionally, those interested in co-branded locations must consult the Cinnabon Disclosure Document for any financial obligations or performance metrics required by Cinnabon.