Is a Carvel franchisee required to become a member of Purchasing Programs designated by Carvel?

According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to become members of any purchasing and/or distribution cooperative(s)/association(s)/program(s), referred to as "Purchasing Programs," that Carvel designates or establishes for the system. This membership is mandatory and must be completed by the deadlines Carvel specifies, which could be before the franchisee's opening date if the Purchasing Program is already in place. Franchisees must also maintain good standing in these programs throughout the term of their Franchise Agreement.

This requirement ensures that Carvel franchisees participate in any designated Purchasing Programs, which are designed to streamline purchasing and distribution within the Carvel system. Franchisees are obligated to pay all reasonable membership fees assessed by these Purchasing Programs. Any membership fees set by Carvel or its affiliates will not exceed 110% of their actual costs and expenses related to these programs.

This policy allows Carvel to manage and control the supply chain, potentially ensuring consistent product quality and cost efficiencies across all franchise locations. However, it also means franchisees have limited autonomy in sourcing products and supplies, and they must factor in the costs of membership fees when assessing their overall operating expenses. Prospective franchisees should inquire about the specific Purchasing Programs in place, the associated fees, and the potential benefits of participating in these programs to fully understand the financial implications.