table_specific

Does the Carvel Franchise Agreement contain provisions related to franchise matters?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

in important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**

In this table, "FA" refers to the applicable section of the Franchise Agreement, "ES" refers to the applicable section of the Express Schedule, "HES" refers to the applicable section of the Hosted Express Schedule, "ICS" refers to the applicable section of the Ice Cream Truck Schedule, and "CBS" refers to the applicable section of the Co-Branded Shoppe Schedule.

Provisions Section in Franchise Agreement Summary
a. Length of the FA: 2.1 20 years
franchise term ES, HES, ICS: 5 years for Express Shoppes, Hosted Express
20.B. Shoppes, and Ice Cream Trucks.
b. Renewal or extension FA: 2.2 One 20-year renewal term if you comply with our
of the term renewal requirements
ES, HES: 20.C. One five-year renewal term if you comply with our
renewal requirements for Express Shoppes and
Hosted Express Shoppes.
ICS: 20.C. If you operate an Ice Cream Truck, we may, in our
sole discretion, offer you one additional five-year
renewal term.
c. Requirements for you renew or extend FA: 3.2 You must satisfy these requirements to enter into a renewal term:
ES, HES, ICS: a. Timely request a renewal term
20.D. and 20.E. b. Complete renewal application.
CBS: 20.C. c.
Have been in substantial compliance with
Franchise Agreement.
d. Remodel, refurbish and renovate the Shoppe (or
make upgrades to the Ice Cream Truck, if applicable).
e. Secure right to operate at Accepted Location or
relocate the Shoppe if necessary to meet our then
current Standards
f.
Sign and return your Renewal Franchise
Agreement (which may be materially different from
the terms contained in the Franchise Agreement
attached to this Disclosure Document).
g. Pay the Renewal Fee
h. You and your guarantors and owners must sign a
general release.
i. If you operate a Co-Branded Shoppe, you must
secure the right from the Co-Branded Franchisor to
continue to operate the Co-Branded Franchise.
Section in
Franchise
Provisions Agreement Summary If you do not meet these conditions by, and you continue to operate after, the expiration date of the Franchise Agreement, the Franchise Agreement will be extended on a month-to-month basis until such time as (i) the conditions above are satisfied, or (ii) we notify you that the Franchise Agreement is terminated.
d. Termination by you FA: 17.1 Not applicable, except franchisees may terminate for any grounds permitted by state law.
e. Termination by us Not applicable Not applicable
without cause
f. FA: 17 We may terminate only if you default.
Termination by us
with cause
g. "Cause" defined - curable defaults FA: 17.3 You have 24 hours to cure if: a. You refuse us permission to inspect or audit. b. Any dilution or adulteration of products at the Shoppe, or any misrepresentation, substitution, or palming off of non-Approved Products from the Shoppe operated under the Franchise Agreement. c. You fail to comply fully with all laws. You have 5 days to cure if: a. You sell, barter, or exchange any Proprietary Goods or Approved Products or other proprietary items at wholesale or retail. You have 10 days to cure if: a. You fail to pay any of your debts to us, our affiliates, or others b. You do not obtain personal covenants required under the Franchise Agreement. c. You default under your mortgage or lease. d. You fail to obtain insurance or provide proof of insurance. e. You fail to provide required reports. You have 30 days to cure if: a. You do not maintain the required financial records. b. You fail to meet the Site Approval Deadline or Construction Start Deadline. c. You breach any other provision of your Franchise
h. "Cause" defined - noncurable defaults FA: 17.2 Agreement. On notice to you: a. You or your Owners violate restrictive covenants
CBS: 20.J or restrictions on use of Confidential Information.
Section in Franchise
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Provisions Agreement Summary
b. You copy or permit anyone else to copy any part
of the Manuals.
c.
You (or any principal of your Entity) are convicted
of a felony, fraud, etc.; engage in conduct harmful to
the business, System, or Proprietary Marks; or
commit a fraud.
d. You abandon the Shoppe or suspend operation of
the Shoppe for five or more days without our consent.
e. Your (or your affiliate's) interest in the lease or
sublease for the Accepted Location expires or
terminates or you otherwise lose possession of the
site.
f.
After curing a default, you commit the same or
similar default again within 12 months.
g. You become insolvent, become subject to
bankruptcy, make an assignment for creditors, subject
to a receiver, have unpaid judgments, subject to
attachment proceedings or execution of levy, or un
dismissed foreclosure.
h. You or your Owners violate, or have any assets
blocked under, any laws related to terrorism.
i. You fail to meet the Opening Deadline (or any
extended deadline).
j.
You have an uncured default in any other
agreement with us or affiliates which would permit
termination under such agreement.
k.
A threat or danger to public health or safety
results from your continued operation of the Shoppe.
l.
You misuse or make any unauthorized use of the
Proprietary Marks.
m. If you operate a Co-Branded Shoppe, your Co
Branded Agreement expires or is terminated, or you
HES: 20.R. lose the right to operate the Co-Branded Franchise.
On notice to you (in addition to the defaults in the
Franchise Agreement):
a. You fail to comply with the franchise agreement
for your Host Facility or the franchise agreement for
your Host Facility terminates or expires.
b. The Host Facility's brand deteriorates in quality or
reputation and is damaging the Carvel brand and
Proprietary Marks.
i.

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 84–91)

What This Means (2025 FDD)

According to Carvel's 2025 Franchise Disclosure Document, the Franchise Agreement includes several provisions addressing various franchise matters. These provisions cover key aspects such as the length of the franchise term, termination conditions, and franchisee obligations upon termination or non-renewal.

The franchise term for a standard Carvel Shoppe is 20 years, while Express Shoppes, Hosted Express Shoppes, and Ice Cream Socials have a shorter term of 5 years. The agreement outlines specific conditions under which Carvel may terminate the franchise, including both curable and non-curable defaults. Curable defaults allow the franchisee a period to rectify the issue, ranging from 24 hours to 30 days, depending on the nature of the default. Non-curable defaults, such as criminal convictions or misuse of proprietary marks, can lead to immediate termination.

Upon termination or non-renewal, Carvel franchisees are obligated to cease using the Carvel system, including proprietary marks, confidential information, trade secrets, and manuals. They must also either return or destroy all materials related to the system and any copies of the manuals. These provisions are typical in franchise agreements to protect the franchisor's brand and intellectual property.

These provisions in the Carvel Franchise Agreement are important for prospective franchisees to understand, as they define the duration of the franchise relationship and the circumstances under which it can be terminated. Franchisees should carefully review these sections to be aware of their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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