Where in the Carvel Franchise Agreement can I find the requirements to enter into a renewal term?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| 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. |
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 requirements to renew your franchise agreement can be found in multiple sections, depending on the type of Carvel shop you operate. For standard franchise agreements, section 3.2 of the Franchise Agreement (FA) outlines the general requirements for renewal. For Express Shoppes (ES), Hosted Express Shoppes (HES) and Ice Cream Trucks (ICS), section 20.D. and 20.E. contains these requirements; for Co-Branded Shoppes (CBS) it is section 20.C.
To be eligible for renewal, all franchisees must meet certain conditions. These include: timely requesting a renewal term and completing a renewal application. Additionally, franchisees must have been in substantial compliance with the existing Franchise Agreement. A franchisee will also need to remodel, refurbish, and renovate the shop (or make upgrades to the Ice Cream Truck, if applicable) to meet Carvel's current standards. You must also secure the right to operate at the accepted location or relocate the shop if necessary to meet Carvel's then-current standards.
Furthermore, franchisees must sign and return a Renewal Franchise Agreement, which Carvel notes may contain terms that are materially different from the original agreement. Franchisees are also required to pay the renewal fee. Finally, both the franchisee and their guarantors and owners must sign a general release. If operating a Co-Branded Shoppe, franchisees must secure the right from the Co-Branded Franchisor to continue operating the Co-Branded Franchise.