Are Carvel franchisees required to contribute to the Ad Fund at the same rate?

According to Carvel's 2025 Franchise Disclosure Document, franchisees may not all be required to contribute to the Ad Fund at the same rate. The document states that some franchisees may not be required to contribute, may contribute at a different rate, or may be required to contribute to a different advertising fund altogether. This means that the amount a franchisee is required to contribute to the Ad Fund can vary.

This policy gives Carvel flexibility in setting advertising contribution rates. Factors influencing the contribution rate could include the franchisee's location, the type of franchise, or specific agreements negotiated. This also means that franchisees should not assume that their contribution rate will be the same as other Carvel franchisees.

Prospective franchisees should inquire about the specific advertising contribution requirements for their franchise agreement. Understanding how the Ad Fund contributions are determined and whether there are any variations based on location or other factors is crucial for financial planning. Franchisees should also investigate how the Ad Fund is managed and how it benefits their specific location, given that Carvel is not obligated to ensure that expenditures from the Ad Fund are proportionate to individual contributions.