Must a Carvel franchisee acquire the Accepted Location before Carvel has accepted it?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
tem 1, we have entered into a management agreement with GoTo Foods for it to provide certain support and services to Carvel franchisees. GoTo Foods may delegate certain of these responsibilities to CL, the previous franchisor of Carvel franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.
1. Site Selection Review. We will review the location you select for your Shoppe and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection anal
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee cannot acquire a location for their Carvel shop until Carvel has reviewed and accepted it. This location, once approved by Carvel, is referred to as the "Accepted Location." If a mutually agreed upon location isn't established when the Franchise Agreement is signed, the franchisee is responsible for finding a site that meets Carvel's criteria within a specified geographic area.
To aid in the site selection, Carvel may require the franchisee to obtain a site selection analysis from an approved supplier, which costs an estimated $2,500 to $5,000. Carvel considers factors such as population density, traffic flow, visibility, parking, household income, and local competition when determining whether to accept a site. However, Carvel does not provide a guaranteed timeline for site approval or disapproval.
The franchisee is responsible for negotiating the terms of the Site Agreement (lease or purchase agreement) and ensuring compliance with Carvel's requirements. Carvel has the right to review the Site Agreement before it is executed. While Carvel may offer assistance in selecting a site, they are not obligated to do so, and they disclaim any responsibility for the suitability of the Accepted Location, as their acceptance is based solely on meeting minimum site selection criteria.