Is a Carvel franchisee required to engage a designated or pre-approved General Contractor?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We will designate or pre-approve one or more licensed and insured general contractors (a "General Contractor") that you must engage, at your own expense, to complete your buildout, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose.
Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance. (Franchise Agreement, Section 6.1.A.)
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, franchisees are generally required to use a General Contractor that Carvel designates or pre-approves. The franchisee bears the expense of this contractor for the buildout of their Carvel shop. However, Carvel may, at its sole discretion, agree in writing to accept a General Contractor proposed by the franchisee.
Carvel's designation, pre-approval, or acceptance of a General Contractor does not constitute an endorsement, nor does it make Carvel liable for the contractor's performance. This means that while Carvel may provide a list of approved contractors, the franchisee is ultimately responsible for ensuring the contractor performs satisfactorily and meets all necessary requirements.
This requirement ensures that the buildout meets Carvel's standards. However, it also means that franchisees may have limited choice in selecting a contractor and may need to seek written approval if they prefer to use a different contractor. Franchisees should carefully consider the potential costs and limitations associated with this requirement when evaluating the Carvel franchise opportunity.