What fees does Carvel charge if there are insufficient funds in the Designated Bank Account?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
As used herein, the term "Designated Bank Account" means the bank account on file with Franchisor for EFT payments required under the Franchise Agreement or Manuals.
Franchisee is responsible for maintaining sufficient funds in the Designated Bank Account for all Comprehensive Support Fees due under this Agreement, in addition to any amounts drafted by EFT under the Franchise Agreement and the Manuals.
In the event there are insufficient funds in the Designated Bank Account to cover the draft of a payment due hereunder, Company reserves the right to charge Franchisee the return costs charged by Franchisor's bank and an administrative fee to cover Franchisor's and/or Company's cost of addressing the nonpayment.
Such administrative fee is in addition to any interest on the amount due.
We may be limited in the amount of the Insufficient Funds Fee we may charge you as described in Item 6 of this Disclosure Document. The Minnesota Department of Commerce requires us to disclose to you that, currently, the highest such fee permitted under Minnesota Statute 604.113 is $30.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee has insufficient funds in their Designated Bank Account to cover a payment, Carvel has the right to charge the franchisee the return costs charged by Carvel's bank, as well as an administrative fee to cover Carvel's costs of addressing the nonpayment. The Designated Bank Account is defined as the account on file with the franchisor for EFT payments required under the Franchise Agreement or Manuals.
This administrative fee is in addition to any interest on the amount due. Carvel also states that franchisees are responsible for maintaining sufficient funds in the Designated Bank Account for all Comprehensive Support Fees due under the agreement, in addition to any amounts drafted by EFT under the Franchise Agreement and the Manuals.
In Minnesota, the insufficient funds fee Carvel charges may be limited. The 2025 Franchise Disclosure Document states that the Minnesota Department of Commerce requires Carvel to disclose that the highest such fee permitted under Minnesota Statute 604.113 is $30.