What is Carvel franchisee required to have for the franchised business?

According to the 2025 Carvel Franchise Disclosure Document, a franchisee is required to have a point of sale (POS) system for their franchised business that meets Carvel's minimum specifications. The franchisee must also obtain support for the POS system from an approved supplier, which may include Carvel or its affiliates.

This requirement ensures that all Carvel locations operate with a standardized system for processing transactions and managing sales data. By mandating the use of a POS system that meets specific criteria, Carvel aims to maintain consistency and efficiency across its franchise network. The approved supplier requirement further ensures that franchisees receive adequate support and maintenance for their POS systems, minimizing potential disruptions to their business operations.

The FDD also mentions that the company engages to provide help desk services for the POS system and other related support services. The service start date is estimated to be approximately twelve weeks prior to the anticipated opening date of the franchised business, as determined and approved by the company. The designated personnel should be trained and competent in the general operation of the POS System and may include, for example, a cashier, shift lead, general manager, area manager, director or internal information technology ("IT") staff.

In addition to the POS system, the franchisee is required to maintain certain insurance coverages. These include commercial general liability insurance, automobile liability insurance, worker's compensation insurance, and employer's liability insurance. The franchisee must also obtain and maintain property insurance covering replacement cost value for the full replacement cost of all real and personal property, including stock, merchandise, trade fixtures, equipment, and improvements and betterments, and business income and extra expense, with covered causes of loss as "Special" or "All Risk" with coinsurance conditions not less than 80%, and further, if you are in a location that resides in FEMA Flood Zones beginning with the letters "A" or "V", coverage for Flood. The franchisee must also have Employment Practices Liability insurance, including third-party coverage, with limits not less than $1,000,000 per employee and $1,000,000 per accident, and Cyber Liability insurance with limits not less than $1,000,000. If the franchisee obtains a claims made policy, they must provide a tail coverage policy for no less than one year after the expiration or termination of this Agreement or the closure of the Franchised Business, whichever occurs first. The tail coverage limits must be equal to, or greater than, the limits provided in the prior policy.