Is GoTo Foods a party to the Franchise Agreement or other agreements that Carvel signs with franchisees?
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 Carvel's 2025 Franchise Disclosure Document, GoTo Foods is not a party to the Franchise Agreement or other agreements that Carvel signs with its franchisees. However, GoTo Foods provides support and services to Carvel franchisees through a management agreement with Carvel. These services are ones that Carvel is obligated to provide under the franchise agreements. GoTo Foods also acts as Carvel's franchise sales agent.
While GoTo Foods is not a direct party to the agreements, GoTo Systems, Carvel's direct parent company, guarantees Carvel's performance of its obligations under the franchise agreements. This guarantee is in place until all obligations of Carvel under its franchise registrations and the Franchise Agreement are satisfied or until Carvel's liability to its franchisees under the Franchise Agreement has been completely discharged.
The financial statements of GoTo Foods are included in the FDD for disclosure purposes, but the document explicitly states that GoTo Foods does not guarantee Carvel's obligations under the Franchise Agreement or other agreements with franchisees. This distinction is important for prospective franchisees to understand the roles and responsibilities of each entity within the Carvel franchise system.