What fee does Carvel charge for each deadline extension request, if granted?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location (the "Site Approval Deadline").
- B. Construction Start Deadline. You must begin the construction and equipping of the Franchised Business by the deadline specified in Schedule A (the "Construction Start Deadline").
- C. Opening Deadline. You must op
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee may request an extension to the Site Approval Deadline, the Construction Start Deadline, or the Opening Deadline. Carvel has the right to require the franchisee to pay a $2,500 extension fee if Carvel agrees to modify any of these deadlines, or if the franchisee misses any of these deadlines. However, Carvel is not obligated to extend any deadlines.
This means that if a Carvel franchisee is struggling to meet any of the key development deadlines, they can ask Carvel for more time. However, Carvel is not required to grant the extension. If Carvel does grant an extension, they can charge the franchisee a $2,500 fee for each deadline that is extended. This fee is in addition to the other costs associated with opening a Carvel franchise, such as the initial franchise fee, construction costs, and inventory.
It is important for prospective Carvel franchisees to carefully consider the development deadlines and their ability to meet them. If a franchisee anticipates needing an extension, they should factor the potential extension fee into their budget. Additionally, franchisees should be aware that Carvel may not grant an extension, even if the franchisee is willing to pay the fee. Therefore, it is crucial to have contingency plans in place to address potential delays.
This type of extension fee is not uncommon in the franchise industry, as it incentivizes franchisees to adhere to the agreed-upon development schedule while providing the franchisor with compensation for the administrative and potential operational disruptions caused by delays. Franchisees should inquire about the typical frequency of extension requests and approvals within the Carvel system to better gauge the likelihood and financial impact of this fee.