What are Carvel franchisees, outside of specific states, acknowledging regarding the reasonableness of the terms and covenants in the Franchise Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THE ACKNOWLEDGEMENT.
As you know, Carvel Franchisor SPV LLC ("we") and the franchisee identified below ("you") are preparing to enter into a Carvel® Franchise Agreement (the "Franchise Agreement") for the operation of a Carvel® franchise. The purpose of this Acknowledgement is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Acknowledgement the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Please review each of the following statements carefully and initial by each providing your acknowledgement that the statement is accurate and true. If you find that a statement is not accurate and true, please cease signing this Acknowledgement and related documents and immediately e-mail Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com and provide an explanation of why you believe such statement is not accurate and true.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, franchisees, excluding those in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, must sign a Franchisee Disclosure Acknowledgement. This acknowledgement confirms that the franchisee is entering into a Carvel Franchise Agreement.
As part of this acknowledgement, franchisees confirm that no unauthorized or untrue statements were made to them, that they have been properly represented in the transaction, and that they understand the limitations on claims they can make related to their franchise. Franchisees must initial each statement to confirm its accuracy and truthfulness. If a franchisee finds any statement to be inaccurate or untrue, they are instructed to stop signing the acknowledgement and related documents and immediately contact Carvel's Senior Vice President of Franchise Administration.
This acknowledgement cannot be signed on the same day the franchisee receives the Franchise Disclosure Document but must be signed on the same day the Franchise Agreement is signed and the franchise fee is paid. This process ensures that franchisees outside of the specified states are fully aware of and agree with the terms and conditions of the franchise agreement before finalizing the deal.