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

According to the 2025 Carvel FDD, not all franchisees are required to contribute to the Ad Fund at the same rate. The document states that some franchisees may not be required to contribute at all, while others may contribute at different rates or to different advertising funds. This means that the advertising contribution requirements can vary among franchisees.

This variation in advertising contribution requirements could be due to factors such as the location of the franchise, the terms of their franchise agreement, or specific arrangements with Carvel. A prospective franchisee should inquire about the specific advertising contribution requirements applicable to their franchise location and agreement. Understanding these obligations is crucial for budgeting and financial planning.

It is important for potential Carvel franchisees to understand that the franchisor has the right to allocate advertising and promotional expenditures to any regions or locales they deem appropriate. The advertising and promotions conducted by Carvel are intended to maximize general public recognition and patronage of the system, and Carvel is not obligated to ensure that expenditures from the Ad Fund are proportionate or equivalent to a franchisee's contributions.