Is a Carvel franchisee required to have a point of sale system for their franchised business?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Franchisee is required to have a point of sale system ("POS System") for the Franchised Business that satisfies Franchisor's Minimum Specifications.
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.
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 have a point of sale (POS) system for their franchised business. The Franchise Agreement specifies that the POS system must meet Carvel's minimum specifications, which Carvel can update at its discretion. Franchisees must also secure support for the POS system from an approved supplier, potentially including Carvel or its affiliates. This ensures that all Carvel locations maintain a standardized and supported system for transactions and data management.
Carvel franchisees are responsible for purchasing, leasing, and installing the required Computer System, which includes the point-of-sale system, computer and technology systems, mobile hardware, software, and other necessary equipment. They must also maintain this system in good repair and use it according to Carvel's standards. Carvel has the right to access all data from the franchisee's Computer System and may require franchisees to use specific polling services from a designated supplier, which could be Carvel or its affiliates.
Furthermore, Carvel or its affiliates may offer project management assistance, coordinate the setup of the Computer System, provide back-office and polling services, and implement necessary modifications and enhancements. Franchisees may be required to enter into agreements and pay fees for these services. The 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. This ensures franchisees have the necessary support and technology to operate their Carvel business effectively, while also allowing Carvel to maintain control over the technology used within its franchise network.