Where can I find the amount and payment schedule for the Carvel Advertising Contribution?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
10. Section 3.2.B. (Advertising Contribution):
The Advertising Contribution shall be in an amount we determine, in our sole discretion, which when combined with the Local Marketing Obligation (as specified in Section 10.1.E. (Local Marketing Obligation)) shall not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We will collect the Advertising Contribution from you based on the portion of the Net Sales of the Franchised Business that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Carvel® side of the Franchised Business. Pursuant to the Co-Branded Agreement, the Co-Branded Franchisor will collect an advertising contribution from you based on the remaining portion of the Net Sales of the Franchised Business that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Co-Branded Franchise's side of the Franchised Business.
11. Section 4.1 (Reserved Rights): The following provisions are added to Section 4.1 of the Agreement.
[For Streetside Locations:]
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, details regarding the Advertising Contribution can be found in Schedule A. Specifically, Section 3.2.B states that franchisees must pay a recurring, non-refundable advertising contribution, with the amount and payment schedule detailed in Schedule A. This contribution is separate from the Grand Opening Obligation and the Local Marketing Obligation.
For co-branded franchises, the Advertising Contribution, when combined with the Local Marketing Obligation, will not exceed 5% of Net Sales. This amount is payable each week based on the Net Sales of the Franchised Business for the preceding week, or on any other basis stated in the Manuals or in Carvel's written notice. Carvel will collect the Advertising Contribution based on the portion of Net Sales attributable to products that Carvel and the Co-Branded Franchisor mutually agree to credit towards the Carvel side of the business. The Co-Branded Franchisor will collect an advertising contribution based on the remaining portion of Net Sales attributable to products credited towards the Co-Branded Franchise's side.
Prospective franchisees should carefully review Schedule A of the Franchise Agreement to understand the exact amount and payment schedule for the Advertising Contribution applicable to their specific franchise type (i.e., co-branded vs. single-brand). They should also inquire about any potential changes to the payment terms that may be outlined in the Manuals or in written notices from Carvel. Understanding these obligations is crucial for budgeting and financial planning as a Carvel franchisee.