Are Carvel franchisees, outside of specific states, required to acknowledge that their success depends on their own business abilities?
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.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel FDD, franchisees outside of specific states must acknowledge that their success depends on their own business abilities. Specifically, the Franchisee Disclosure Acknowledgement is not completed if the franchise is subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Furthermore, if the franchise is to be operated in, or the franchisee is a resident of, Maryland, the acknowledgement should not be signed.
This acknowledgement is designed to ensure that prospective Carvel franchisees understand the limitations on claims they can make regarding the purchase and operation of their franchise. It confirms that no unauthorized or untrue statements were made during the franchise sales process and that the franchisee has been properly represented. By signing, franchisees acknowledge their understanding of these limitations and confirm the accuracy of the statements within the acknowledgement.
This requirement underscores the importance of independent due diligence for prospective Carvel franchisees. It highlights that Carvel wants to ensure franchisees are not relying on any representations beyond what is officially documented and authorized. The franchisee's signature confirms they are entering the agreement with a clear understanding of their responsibilities and the factors influencing their success, particularly their own business acumen. This acknowledgement must be signed the same day the Franchise Agreement is signed and the franchise fee is paid, but not on the same day as the Receipt for the Franchise Disclosure Document.