Is the Grand Opening Obligation for a Carvel franchise in addition to other advertising contributions?

According to Carvel's 2025 Franchise Disclosure Document, the Grand Opening Obligation is indeed in addition to other advertising contributions. Specifically, it is separate from both the Advertising Contribution and any Local Marketing Obligations that a franchisee may have. This means that franchisees must budget for these advertising expenses independently.

The Grand Opening Obligation requires franchisees to spend a specified amount on advertising within a defined period around their opening date, ranging from 90 days before to 90 days after the opening. The amount required for the Grand Opening Obligation varies depending on the location type. For 'Other Locations', the obligation is $6,000; for 'Streetside Locations', it is $15,000; and for the first four 'Streetside Locations' in emerging markets, it is $25,000. These amounts cover advertising for both the Carvel brand and any co-branded franchise involved.

Franchisees should note that Carvel retains the right to either require the franchisee to conduct the grand opening advertising themselves, subject to Carvel's approval of the advertising plan, or to have the franchisee pay the Grand Opening Obligation to Carvel or its Ad Fund for Carvel to manage the advertising. If a franchisee fails to meet their Grand Opening Obligation, Carvel can either require them to spend the remaining amount on local marketing or spend the amount themselves and then be reimbursed by the franchisee. This ensures that the grand opening is properly promoted, but it also adds to the financial responsibilities of opening a Carvel franchise.