What must a Carvel franchisee do if they haven't agreed on an Accepted Location when signing the Franchise Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
o 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 analysis will be $2,500 to $5,000. We consider the following factors in determining whether to accept sites: population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Shoppes. There is no time limit for us to approve or disapprove of a site. (Franchise Agreement, Section 5.1)
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Shoppes, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location.
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, if a franchisee and Carvel have not agreed on an Accepted Location when signing the Franchise Agreement, the franchisee must select a location that meets Carvel's site selection criteria within a geographic area specified by Carvel.
For any proposed site, Carvel may require the franchisee to obtain a site selection analysis from an Approved Supplier, which could cost between $2,500 and $5,000. This analysis may include factors such as traffic patterns, demographics, and competitors within the market. Carvel considers factors such as population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Carvel Shoppes, when determining whether to accept sites.
The franchisee must identify the Accepted Location, obtain Carvel's acceptance of it, sign any required documentation, obtain Carvel's acceptance of a Lease for the Accepted Location, and sign the accepted Lease or otherwise acquire ownership rights to the Accepted Location within 150 days after signing the Franchise Agreement. Failure to meet this deadline (the Site Approval Deadline) or the Construction Start Deadline, and failure to cure such failure within 30 days, or not meeting the Opening Deadline, may result in Carvel terminating the Franchise Agreement without refunding the Initial Franchise Fee.