Is GoTo Foods a party to the Carvel Franchise Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024 and December 31, 2023. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — Financial Statements (FDD page 99)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, GoTo Foods is not a party to the Franchise Agreement. While GoTo Foods provides support and services to Carvel franchisees through a management agreement with the franchisor, Carvel Franchisor SPV LLC, it does not sign the actual franchise agreement with franchisees. GoTo Foods' financial statements are included in the FDD for disclosure purposes, but it explicitly states that GoTo Foods is not a party to the Franchise Agreement.
This means that while GoTo Foods plays a significant role in supporting the Carvel franchise system, the legal agreement is between the franchisee and Carvel Franchisor SPV LLC. GoTo Foods' involvement is through a separate management agreement with Carvel, outlining the services and support they provide. This arrangement is common in franchising, where a parent company or affiliate provides services to the franchise system without being directly party to the franchise agreement.
Prospective Carvel franchisees should understand this distinction. While GoTo Foods provides important services, the legal obligations and responsibilities outlined in the Franchise Agreement are between the franchisee and Carvel Franchisor SPV LLC. Any issues or disputes related to the franchise agreement would be addressed with Carvel Franchisor SPV LLC, not directly with GoTo Foods. However, GoTo Systems, another affiliate, guarantees Carvel's obligations under the Franchise Agreement.
It is important for potential franchisees to carefully review the roles and responsibilities of each entity involved in the Carvel franchise system, as detailed in the FDD and related agreements. Understanding the relationship between Carvel, GoTo Foods, and GoTo Systems is crucial for assessing the support structure and legal framework of the franchise opportunity.