What is the grand opening advertising obligation for a Carvel franchise in other locations?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
d other retail facilities not dedicated to the sale of the Approved Products, (b) mail order and e-commerce channels, and (c) kitchens devoted to the preparation of Products or Approved Products (often referred to as ghost, dark or cloud kitchens), which may use
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel FDD, the grand opening advertising obligation for locations other than streetside locations is $6,000. This amount includes advertising for both the Carvel brand and any co-branded concepts. The franchisee must spend this amount within a period starting 90 days before the opening date and ending 90 days after the opening date.
Carvel, at its discretion, may require the franchisee to pay the grand opening obligation to Carvel or its Ad Fund. This allows Carvel to manage the advertising plan. The grand opening obligation is separate from the franchisee's advertising contribution and any local advertising obligations. If a franchisee relocates their Carvel business, Carvel may require them to fulfill the grand opening obligation again.
The franchisee must obtain written approval from Carvel for their grand opening advertising plan at least 30 days before the campaign's start date. The franchisee must then implement the advertising plan approved or designated by Carvel, using only approved advertising and promotional content. Carvel has the right to request documentation to verify compliance with the grand opening obligation.
If a Carvel franchisee fails to meet the advertising expenditure requirements, Carvel has the right to either require the franchisee to spend the remaining amount on local marketing advertising, in addition to their local marketing obligation, or spend an amount not exceeding the grand opening obligation to promote the opening of the franchise, with the franchisee required to reimburse Carvel for these expenses.