Is a Carvel franchisee permitted to operate a ghost kitchen or delivery business under another brand from the Franchised Business?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise permitted by us in writing, you may not sell any Goods through the Internet or using any other channel of distribution other than your
Franchised Business. You may not use the Franchised Business or the premises of the Franchised Business to produce or sell any goods, products, or services other than Approved Products sold using the Marks. In particular, you may not operate a ghost kitchen or delivery business selling goods, products, or services under another brand.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from operating a ghost kitchen or delivery business under another brand from the Franchised Business. The FDD states that franchisees may not use the Franchised Business or its premises to produce or sell any goods, products, or services other than Approved Products sold using the Marks. This restriction is clearly outlined in Item 23.
This restriction means that a Carvel franchisee must exclusively focus on selling Carvel's approved products and services under the Carvel brand. They cannot diversify their offerings by running a separate delivery or ghost kitchen business, even if it operates from the same location. This is to maintain brand consistency and prevent confusion among customers.
The franchisor maintains control over the products and services offered at a Carvel franchise. A prospective franchisee should be aware of this restriction and factor it into their business plan. While this limits diversification, it also ensures that the franchisee benefits from the established Carvel brand and system, focusing their efforts on the core offerings and standards of the franchise.