Is a Carvel franchisee required to maintain and repair the Computer System?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Acquisition and Operation. You must promptly purchase, lease and/or license and install at the Franchised Business, at your sole expense, the computerized point-of-sale system, computer and technology systems, mobile hardware, software, applications, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. fiber or cable), and other equipment that we require from time to time (the "Computer System"), all of which you must keep in good maintenance and repair. You must use the Computer System in accordance with our Standards. We have the right to retrieve all data from your Computer System that we deem appropriate, and we may require you to obtain, at your expense, polling services we specify from a supplier that we specify (which may be us or our affiliates). If it becomes advisable at any time, in our sole discretion, for us to change, upgrade, or discontinue use of any of the components of the Computer System, you will comply with our directions, at your expense, within a reasonable time after notice to you. We will have no liability or obligation whatsoever with respect to our requirement that you modify or discontinue use of any of the components of the Computer System or any unauthorized modifications to the Computer System that you make.
- B. Computer Services. We or our affiliates may, in our sole discretion, provide you with, or require you to purchase from an Approved Supplier, (i) project management assistance related to, and coordinate the onboarding and configuration of, your Computer System before your Franchised Business opens or, if you are acquiring an existing Franchised Business, when you assume control of such Franchised Business; (ii) back office and polling services; (iii) required modifications and enhancements to the Computer System; and/or (iv) other maintenance and
support programs. We may require you to enter into agreements with, and pay a reasonable fee to, us, our affiliates, or Approved Suppliers for such services. The fees for such services may be increased in any calendar year by no more than the Allowed Adjustment. Any fees that we or our affiliates charge for modifications and enhancements to the Computer System and fees for thirdparty hardware or software will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to maintain and repair the Computer System. The Computer System includes the computerized point-of-sale system, computer and technology systems, mobile hardware, software, applications, associated computer hardware, telephone lines, network connections, communications equipment, and high-speed internet access. The franchisee is responsible for keeping the Computer System in good maintenance and repair, according to Carvel's standards.
Carvel also has the right to retrieve all data from the franchisee's Computer System and may require the franchisee to obtain polling services from a supplier that Carvel specifies, potentially at the franchisee's expense. If Carvel decides to change, upgrade, or discontinue any components of the Computer System, the franchisee must comply with these directions at their own expense, within a reasonable time after receiving notice. Carvel assumes no liability for required modifications or discontinuations of Computer System components or any unauthorized modifications made by the franchisee.
Furthermore, Carvel or its affiliates may offer or require franchisees to purchase services such as project management assistance for the Computer System, back-office and polling services, required modifications and enhancements, and other maintenance and support programs. Franchisees may be required to enter into agreements and pay fees for these services to Carvel, its affiliates, or approved suppliers. Fees for modifications and enhancements to the Computer System, as well as third-party hardware or software, will not exceed 110% of Carvel's or its affiliates' actual costs and expenses.