Is a Carvel franchisee required to participate in Customer Card Programs?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
12.9 Customer Card Programs.
At your expense, you must fully participate in gift card programs, loyalty programs, credit card and other payment programs, customer tracking programs, incentive programs, reward programs, and other types of programs ("Customer Card Programs") that we develop or designate to support and promote the System.
These Customer Card Programs may also promote, or involve the participation of, restaurants or businesses other than Businesses, such as restaurants or businesses operated under different brands that are operated or licensed by our affiliates.
You must comply with all our procedures and policies for Customer Card Programs in the Manuals.
You will, at your sole expense, promptly install at the Franchised Business any acceptance system for Customer Card Programs and/or hardware and software necessary for Customer Card Programs to operate with the Computer System.
You must also obtain any services and supplies we require in connection with Customer Card Programs and pay all fees charged by us, our affiliates, or our Approved Suppliers in connection with Customer Card Programs.
Any fees that we or our affiliates charge you related to Customer Card Programs will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
Customer Card Programs may use aspects of the Computer System.
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 participate fully in Customer Card Programs. These programs include gift card, loyalty, credit card, payment, customer tracking, incentive, and reward programs that Carvel develops or designates to support and promote the Carvel system. These programs may also involve other businesses or restaurants operated or licensed by Carvel's affiliates.
As a Carvel franchisee, you must comply with all procedures and policies for these Customer Card Programs as outlined in the manuals. This includes promptly installing any acceptance systems, hardware, and software necessary for the programs to operate with the computer system at your own expense. Additionally, you are responsible for obtaining required services and supplies and paying all associated fees charged by Carvel, its affiliates, or approved suppliers.
The fees that Carvel or its affiliates charge related to the Customer Card Programs will not exceed 110% of their actual costs and expenses. Customer Card Programs may also utilize aspects of the computer system. This means franchisees need to budget for these ongoing expenses and ensure their systems are compatible with Carvel's requirements.
This requirement ensures uniformity and brand consistency across all Carvel locations, allowing Carvel to gather customer data and implement system-wide promotions. While participation is mandatory, the franchisor caps the fees franchisees pay to 110% of actual costs, which provides some cost control. Franchisees should inquire about the typical costs associated with these programs and the specific technologies required to ensure they are prepared for these obligations.