Can Carvel grant an extension to the Site Approval Deadline, Construction Start Deadline, or Opening Deadline?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must (i) identify the Accepted Location, (ii) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location within 150 days after you sign the Franchise Agreement (the "Site Approval Deadline").
You must submit to us a complete set of final Architectural Plans at least 30 days before the Construction Start Deadline.
You must begin construction at the Accepted Location within 270 days after we sign the Franchise Agreement (the "Construction Start Deadline").
You must open the Shoppe within 360 days after we sign the Franchise Agreement (the "Opening Deadline").
We may, in our sole discretion and upon your request, grant you an extension to any of these deadlines for a fee.
We may terminate your Franchise Agreement (without refunding the Initial Franchise Fee) if you fail to meet the Site Approval Deadline or the Construction Start Deadline and fail to cure such failure within 30 days or if you do not meet the Opening Deadline. (Franchise Agreement, Section 6.5)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel may grant an extension to the Site Approval Deadline, Construction Start Deadline, or Opening Deadline. The Site Approval Deadline requires the franchisee to identify and secure an accepted location within 150 days of signing the Franchise Agreement. The Construction Start Deadline mandates that construction must begin within 270 days after signing the Franchise Agreement. The Opening Deadline requires the Carvel Shoppe to be open within 360 days after signing the Franchise Agreement.
Carvel has the discretion to grant an extension to any of these deadlines upon the franchisee's request. However, this extension is not guaranteed and may be subject to a fee. It is important for prospective franchisees to understand the initial deadlines and factor in potential delays related to site selection, permitting, and construction.
Failure to meet the Site Approval Deadline or the Construction Start Deadline, and not curing the failure within 30 days, or failing to meet the Opening Deadline, can result in the termination of the Franchise Agreement. In such cases, Carvel will not refund the Initial Franchise Fee. This underscores the importance of adhering to the established timelines or securing an extension from Carvel to avoid potential financial losses and termination of the franchise agreement.
Prospective franchisees should discuss the conditions for granting extensions, associated fees, and the likelihood of obtaining an extension with Carvel prior to signing the Franchise Agreement. Understanding these factors will help in planning and managing the development timeline effectively.