What are the Carvel franchisee's obligations regarding the cleanliness and maintenance of the Franchised Business?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
rights under Section 17 (Default and Termination), including the right to terminate this Agreement.
- D. Non-compliance Fees. If you fail to comply with any of the Standards or any provision of this Agreement, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more non-compliance fees upon written notice to you. Currently, the fees range from $25 to $500 per single violation. The non-compliance fees shall be specified in the Manuals or otherwise in writing, may be modified from time to time upon written notice to you, may be charged repeatedly (as frequently as daily) if the non-compliance is ongoing, and may vary based on the severity of the defaults, the number of the defaults, and whether the defaults have been repeated, provided that the fees may be increased in any calendar year by no more than the Allowed Adjustment
- 12.5 Continuing Maintenance. You acknowledge and agree that it is in your best interest, and in the best interests of the franchise network, that your Franchised Business be clean, up-to-date, well-maintained, and well-appointed. You must continuously maintain the interior and exterior of the Franchised Business (including the parking lot, walkways, and landscaping that is part of the Accepted Location), and all furniture, fixtures, equipment, décor, and signage in or at the Franchised Business, in the highest degree of cleanliness, orderliness, sanitation, and repair in accordance with all applicable Laws and Standards. You agree, at your expense and at intervals that we may periodically designate, as needed, or at our direction, to promptly take the following
continuing maintenance actions throughout the Term: (i) thorough cleaning (which may include professional cleaning), (ii) repainting and making minor alterations to the décor of the interior and exterior of the Franchised Business; (iii) interior and exterior repair of the Franchised Business; and (iv) repair or replacement of damaged, worn-out, malfunctioning, non-functioning, or obsolete furniture, fixtures, equipment, décor, and signage. You may not make any material alteration to the interior or exterior of the Franchised Business without our prior written consent.
12.6 Refreshes and Remodels.
- A. Refresh. Within six months after the fifth and the fifteenth anniversaries of the Opening Date, you must, at your sole expense and in accordance with our then-current Standards and directives, refresh, refurbish, and renovate the Franchised Business to meet our then-current operational and branding Standards (a "Refresh").
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees must maintain a clean and well-maintained Franchised Business. Carvel emphasizes that keeping the business up-to-date and well-appointed is in the best interest of both the franchisee and the entire franchise network.
Specifically, franchisees are responsible for maintaining both the interior and exterior of the Franchised Business, including the parking lot, walkways, landscaping, furniture, fixtures, equipment, décor, and signage. This maintenance must adhere to the highest standards of cleanliness, orderliness, sanitation, and repair, in compliance with all applicable laws and standards. Franchisees are also obligated to perform regular maintenance actions, such as thorough cleaning (potentially including professional cleaning services), repainting, minor décor alterations, and the repair or replacement of any damaged, worn-out, malfunctioning, or obsolete items. These actions must be taken at the franchisee's expense and at intervals designated by Carvel.
Furthermore, franchisees cannot make any significant alterations to the interior or exterior of the Franchised Business without obtaining prior written consent from Carvel. Franchisees are also required to undertake refreshes and remodels of their locations. Within six months after the fifth and fifteenth anniversaries of the store's opening date, franchisees must refresh, refurbish, and renovate the Franchised Business to meet Carvel's then-current operational and branding standards. These refreshes may involve adding, updating, or replacing various components of the business, such as merchandising elements, graphics, paint, menu boards, signage, kitchen equipment, computer systems, and other furniture and décor, as specified by Carvel. Franchisees are expected to cover all capital expenditures required to meet these obligations, even if the expenditures cannot be amortized over the remaining term of the agreement. These maintenance and update requirements are in addition to any other obligations outlined in the agreement, including changes to standards and manuals and continuing maintenance requirements.