Does the Carvel Franchise Agreement require a Schedule of Personal Covenants?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
The following contracts and related documents are attached to this Disclosure Document:
EXHIBIT B CARVEL FRANCHISE AGREEMENT AND RELATED AGREEMENTS:
Schedule A - Franchise Specific Terms
Schedule B - Personal Covenants
Schedule C - Guaranty of Payment and Performance
Schedule D - State Law Addendum (If Required)
Schedule E - Multi-Unit Addendum
Source: Item 22 — Contracts (FDD pages 99–100)
What This Means (2025 FDD)
Yes, according to Carvel's 2025 Franchise Disclosure Document, the Franchise Agreement includes a Schedule of Personal Covenants. This schedule, identified as Schedule B, is an integral part of the Carvel Franchise Agreement.
The Personal Covenants agreement mandates that all individuals holding an equity interest in the franchisee entity must sign the agreement. By signing, these individuals agree to be bound by the provisions outlined in the Franchise Agreement, specifically including the restrictions detailed in Section 15, which pertains to Confidential Information and Restrictive Covenants. This ensures that all owners are personally liable for upholding these critical obligations.
The inclusion of Personal Covenants is a standard practice in franchising to ensure that all owners of the franchise are committed to protecting the franchisor's interests, especially concerning confidential information and competition. This requirement aims to prevent owners from circumventing their obligations through the corporate entity. Prospective Carvel franchisees should carefully review Schedule B and Section 15 of the Franchise Agreement to fully understand the implications for all equity holders in their business.