Does GoTo Systems guarantee Carvel's performance of obligations under its franchise agreements?

According to the 2025 Carvel FDD, GoTo Systems guarantees Carvel's performance of obligations under its franchise agreements. This means that GoTo Systems is legally bound to ensure that Carvel fulfills its commitments to franchisees as outlined in the franchise agreement.

For a prospective Carvel franchisee, this guarantee provides an added layer of security. If Carvel fails to meet its obligations, the franchisee may have recourse against GoTo Systems to ensure those obligations are met. This could include providing support services, maintaining brand standards, or fulfilling other contractual duties.

It is important for potential franchisees to understand the specific obligations that Carvel has under the franchise agreement and the extent to which GoTo Systems guarantees these obligations. Reviewing the franchise agreement and related documents carefully is essential to fully understand the scope of this guarantee and its implications for the franchisee's investment and business operations.