Where can I find the amount and payment schedule for the Carvel Royalty Fee?

According to the 2025 Carvel Franchise Disclosure Document, the Royalty Fee is detailed in Section 3.2.A, with specific amounts and payment schedules outlined in Schedule A. For a standard Carvel franchise, the Royalty Fee is 6% of Net Sales, payable weekly based on the previous week's sales. This payment schedule may also be adjusted as stated in the manuals or in written notice from Carvel.

For co-branded locations, Carvel and the Co-Branded Franchisor will jointly collect the Royalty Fee based on the Net Sales of the entire co-branded franchise.

It is important to note that failure to pay the Royalty Fee can lead to termination of the franchise agreement, in which case liquidated damages may apply. These damages could include a lump-sum payment equivalent to the average monthly Royalty Fee owed during the 36 months before termination, multiplied by the lesser of the remaining term or 36 months. Additionally, Carvel may conduct audits, and underreporting Net Sales can result in penalties, including payment of understated Royalty Fees, interest, and reimbursement for audit expenses if the understatement exceeds 2% of Net Sales.

Carvel also has the right to make bank transfers or drafts for Royalty Fees based on reports, point-of-sale system data, audit results, or payment obligations specified in the franchise agreement. Interest at a rate of 1.5% per month may be charged on late payments, and late reporting of financial information can incur a fee of $50 per week.