Is a Carvel franchisee required to participate in promotional campaigns established by the franchisor or advertising cooperative?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time, we or your Advertising Cooperative (if any) may establish temporary or permanent promotional campaigns (e.g., limited time offers, 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 Businesses, 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 participate in the promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel FDD, franchisees are required to participate in promotional campaigns. Carvel or the Advertising Cooperative may establish temporary or permanent promotional campaigns such as limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs applicable to the Carvel system as a whole or to specific advertising market areas. These campaigns may also involve other restaurants or businesses operated or licensed by Carvel's affiliates.
Carvel franchisees must participate in these promotional programs at their own cost. This includes the costs to purchase, lease, and install all necessary materials, such as counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
In addition to participating in promotional campaigns, Carvel franchisees must also participate in Customer Card Programs that Carvel develops or designates to support and promote the Carvel system. These programs may include gift card programs, loyalty programs, credit card and other payment programs, customer tracking programs, incentive programs, and reward programs. Franchisees are responsible for installing any necessary acceptance systems and hardware/software at their own expense and must comply with all procedures and policies outlined in the manuals.