Is a Carvel franchisee responsible for maintaining and repairing the Computer System?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
t and related media that we have approved.
Pricing
We may, if permitted by applicable law, establish maximum, minimum, or other pricing requirements with respect to the prices you may charge for Approved Products, including required participation in systemwide discount programs and promotions. If we do not establish such pricing requirements, then you will have the right to determine the prices you charge.
Computer and POS Systems
You must provide financial and business records and information to us according to reporting formats, methodologies and time schedules that we establish. As part of these record keeping requirements, you must install computerized Shoppe management systems meeting our Standards, as modified in response to business, operations and marketing conditions. Accordingly, you must promptly purchase, lease and/or license and install at the Shoppe, at your sole expense, the POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System"), all of which you must keep in good maintenance and repair. We estimate the total cost of the Computer System will be $10,500 to $32,000 for a Full Shoppe and $10,500 to $20,000 for an Express Shoppe ($3,000 to $6,400 for a Hosted Express Shoppe) or an Ice Cream Truck. For a Co-Branded Shoppe, the Computer System that we require meets both our and the Co-Branded Franchisor's standards. You may incur additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.
The Computer System includes a POS System that we specify, the principal functions of which are to manage permanent financial records of sales transactions at your Shoppe, cash control, inventory control, and menu and price change control, among other things. We will have independent electronic and manual access to certain information within the POS System and there are no contractual limitations on our right to access this information. We have developed interfaces with our preferred providers that facilitate this access. You must provide any assistance we require to integrate your POS System with our headquarters system at the earliest possible time and in the manner we prescribe. You must accurately, consistently, and completely record, structure, capture and provide all required information through your POS System in accordance with all applicable laws and protect such information as required.
To maintain a consistent reporting system, you must purchase or lease and use a POS System specified by us from a designated Approved Supplier. We estimate that the initial cost to you for the POS System and related necessary equipment, including installation and activation, currently ranges from $8,800 to $14,200 under the CapEx Program, depending on the number of terminals, travel costs, and other logistical factors. Under the CapEx Program, you must pay a monthly software license fee for the POS System that is currently $159 to $397 per month depending on your equipment configuration. If you choose to lease the POS System under the HaaS Program, you must pay a monthly software license and hardware lease fee for the POS System that is currently $216 to $442 per month depending on your equipment configuration and a one-time
$300 activation fee. We will collect the monthly fees, which may change from time to time, and pay them to the vendor on your behalf.
Whether you are opening a new Shoppe or purchasing an existing Shoppe, we may, in our sole discretion, provide you with project management assistance related to, and coordinate the onboarding and configuration of, your POS System.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are responsible for maintaining and repairing the Computer System. The franchisee must purchase, lease, and install the Computer System at their own expense, ensuring it is kept in good maintenance and repair. The Computer System includes the POS system, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high-speed internet access, and credit card processing equipment. The estimated total cost of the Computer System ranges from $10,500 to $32,000 for a Full Shoppe, $10,500 to $20,000 for an Express Shoppe, and $3,000 to $6,400 for a Hosted Express Shoppe or an Ice Cream Truck.
Carvel franchisees are also responsible for periodic upgrades and updates to the Computer System to remain compliant with Carvel's standards. Carvel may revise the specifications for the Computer System, and franchisees must comply with any changes, upgrades, or discontinuations of components at their own expense within a reasonable time after notice. This includes potentially purchasing a new POS System, signing software license agreements, and paying related support fees. Carvel can require franchisees to add, substitute, or replace computer hardware or software, and there are no contractual limitations on the frequency or cost of these upgrades and replacements.
While Carvel may offer project management assistance related to the POS System onboarding and configuration for a fee (currently estimated between $1,500 and $2,000), the franchisee ultimately bears the responsibility for maintaining the system. Franchisees must also procure any services necessary for the POS System to communicate with Carvel's system and maintain the POS System in good repair. Carvel currently requires franchisees to obtain the required support and maintenance service from them or their affiliate by signing the POS System Support Services Agreement.