Does the Carvel FDD state that the success of my franchise depends on factors beyond my control?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Your Acknowledgements.
You acknowledge and agree that: (i) you have conducted an independent investigation of the business contemplated by this Agreement, recognize that it involves business risks, and recognize that making a success of a venture is largely dependent on your own business abilities; (ii) no assurance or warranty, express or implied, has been given to you by us or any of our affiliates as to the potential success of any business contemplated by this Agreement or the profits that may be achieved; (iii) there are no promises, commitments, "side deals," options, rights of first refusal, or other rights or obligations in connection with this Agreement except as expressly provided for in this Agreement; and (iv) the terms and covenants in this Agreement are reasonable and necessary for us to maintain our high standards of quality and service, as well as the uniformity of those standards at each Business, and to protect and preserve the goodwill of the Marks.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees acknowledge that success depends largely on their own business abilities. Specifically, the FDD states that franchisees recognize that the business involves risks and that making a success of the venture is largely dependent on their own business abilities. This statement suggests that while Carvel provides a franchise system, the franchisee's individual capabilities and efforts are critical for the success of the business.
This acknowledgement is part of a broader set of statements that franchisees, except those in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin), must agree to. These acknowledgements also include confirming that no assurance or warranty has been given by Carvel regarding the potential success of the business or the profits that may be achieved.
Prospective Carvel franchisees should carefully consider this acknowledgement, understanding that while the Carvel brand and system offer a foundation, their personal skills, management, and dedication will significantly influence their franchise's performance. It is common in franchising for the franchisee's efforts to play a crucial role, but franchisees should still evaluate the support and resources Carvel provides to help mitigate risks and enhance their chances of success.