What is the Carvel franchisee solely responsible for regarding the Site Agreement?

According to Carvel's 2025 Franchise Disclosure Document, the franchisee is solely responsible for two key aspects of the Site Agreement. First, the franchisee is responsible for negotiating the terms of the Site Agreement, which includes the lease, sublease, or rental agreement, or the purchase agreement for the location. This means the franchisee must handle all discussions and bargaining with the landlord or seller to secure favorable terms. Second, the franchisee is responsible for performing under the Site Agreement, meaning they must fulfill all obligations outlined in the lease or purchase agreement, such as paying rent or mortgage, maintaining the property, and adhering to any other conditions specified in the agreement.

This allocation of responsibility places significant importance on the franchisee's ability to effectively negotiate and manage the Site Agreement. Franchisees should carefully review the terms of any proposed Site Agreement and seek professional advice from attorneys or real estate experts to ensure they understand their obligations and the potential risks involved. Failing to adequately negotiate or perform under the Site Agreement could lead to financial losses or legal disputes.

While Carvel retains the right to review the Site Agreement to verify its compliance with their requirements, this review does not diminish the franchisee's ultimate responsibility for the agreement's terms and performance. This is a common practice in franchising, as the franchisee typically has more direct control over the local real estate market and the specific terms of the lease or purchase agreement. Therefore, prospective Carvel franchisees must be prepared to take ownership of the Site Agreement process and ensure they are fully capable of meeting their obligations.