Are Carvel franchisees required to purchase components of the Computer System from Approved Suppliers?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Shoppe, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. Full Shoppes and Express Shoppes will be required to use this designated POS System; Hosted Express Shoppes and Ice Cream Trucks may use another, approved POS System with prior approval from us. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 52–56)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are generally required to purchase most components of their Computer System from Approved Suppliers. Currently, Carvel has Approved Suppliers for the POS System and certain required software, including the Learning Management System. Franchisees must also use designated Approved Suppliers for point-to-point encryption (P2PE) solutions, which include both hardware and software used with the POS System for secure payment processing. Full Shoppes and Express Shoppes must use the designated POS System, while Hosted Express Shoppes and Ice Cream Trucks may use another approved POS System with prior approval from Carvel.
Carvel may require franchisees to use proprietary software or purchase software from a designated vendor, necessitating the execution of software license agreements and related maintenance agreements. Carvel may also mandate specific network connections, potentially requiring franchisees to use an approved or designated Internet Service Provider or other communications provider. Currently, franchisees must obtain the POS System from Carvel's designated vendor, and Carvel may collect upfront and ongoing fees for the POS System and pay the vendor on the franchisee's behalf. Franchisees may also be required to maintain support service contracts from Carvel, its affiliates, or designated Approved Suppliers.
These requirements ensure that Carvel franchisees use compatible and secure systems, which helps maintain brand consistency and protect customer data. However, it also limits the franchisee's choice of vendors and may increase costs if the Approved Suppliers are more expensive than other options. Prospective franchisees should inquire about the specific costs associated with the required Computer System components and the process for requesting approval of alternative suppliers or systems.