Is a Carvel franchisee required to participate in promotional campaigns established by Carvel or their Advertising Cooperative, and who bears the costs associated with participation?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ffers, gift cards, coupons, loyalty programs,
customer relationship management, and other supplemental marketing programs) applicable to the System as a whole or to specific advertising market areas. These promotional campaigns may also promote, or involve the participation of, restaurants or businesses other than Shoppes, such as restaurants or businesses operated under different brands that are operated or licensed by our affiliates. You are required to participate in these promotional programs at your own cost, including the costs to purchase, lease and install all materials necessary to the promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest, Snapchat, YouTube, TikTok, etc.), applications, keyword or adword purchasing programs, accounts with websites featuring gift certificates or discounted coupons (such as Groupon, Living Social, etc.), mobile applications, online videos, display banner campaigns, e-mail marketing campaigns, or other means of digital advertising on the Internet or any other means of digital or electronic communications (collectively, "Digital Marketing") that are intended to promote the Proprietary Marks, your Shoppe, and the entire network of Shoppes. We will have the sole right to control all aspects of any Digital Marketing, including those related to your Shoppe.
Unless we consent otherwise in writing, you may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Proprietary Marks or that relate to the Shoppe.
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 in promotional programs, and they must bear the costs associated with this participation. These costs include purchasing, leasing, and installing all necessary materials, such as counter cards, posters, banners, signs, photographs, give-away items, and gift cards. These promotional campaigns may also involve other restaurants or businesses operated under different brands by Carvel's affiliates.
Carvel or the Advertising Cooperative may establish temporary or permanent promotional campaigns applicable to the entire Carvel system or specific advertising market areas. These campaigns can include limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs. These promotional campaigns may also involve other restaurants or businesses operated under different brands by Carvel's affiliates.
Franchisees are also required to participate fully in Customer Card Programs, such as gift card programs and loyalty programs, that Carvel develops or designates to support and promote the Carvel system. Franchisees must comply with all procedures and policies for these programs as outlined in the manuals. They are responsible for installing any necessary acceptance systems and hardware/software at their own expense and must obtain required services and supplies, paying all associated fees to Carvel, its affiliates, or approved suppliers. Any fees charged by Carvel or its affiliates for Customer Card Programs will not exceed 110% of their actual costs and expenses related to these products or services.