Does Carvel guarantee a minimum Area of Protection for a Shoppe?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
nded with such second brand and one or more other brands).
If you operate a Swirl Shoppe in a Streetside Location, during the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, another Swirl Shoppe at a Streetside Location within the Area of Protection. For the avoidance of doubt, we may operate, or license others to operate, single-branded Shoppes or Cinnabon Co-Branded Shoppes inside or outside the Area of Protection.
We may negotiate your Area of Protection with you. The size and scope of the Area of Protection will be in the Franchise Agreement and will be determined on a case-by-case basis. The Area of Protection will not exceed a one-block radius for a Shoppe in an urban location (the downtown area of the 100 largest U.S. cities as measured by population as of the effective date of the Franchise Agreement) or a one-mile radius for a Shoppe in any non-urban location. There is no minimum Area of Protection for a Shoppe. The factors that we consider in determining the size of an Area of Protection include current and projected market demand, demographics and population based on our research and experience, median household income, presence of other businesses, location of competitors, traffic patterns, access and visibility, location of other Shoppes, our future development plans and other market conditions.
If the Accepted Location is not known when you sign the Franchise Agreement, we will designate the Area of Protection once we authorize a location for the Shoppe and the Accepted Location and Area of Protection will be documented when we accept the location. If the Accepted Location is known when you sign the Franchise Agreement, the Franchise Agreement will specify the Accepted Location for your Shoppe and the Area of Protection.
If you default under the Franchise Agreement and fail to cure the default in the applicable cure period (if any), we have the right to reduce or eliminate your Area of Protection, in addition to our other remedies. Except for as described in the previous sentence, the Area of Protection may not be altered before the expiration or termination of the Franchise Agreement. Your territorial
protection is not dependent on achievement of a certain sales volume, market penetration or other factors, other than compliance with the Franchise Agreement.
Our Reserved Rights Under the Franchise Agreement
Under the Franchise Agreement, we and our affiliates retain all the rights that we do not specifically grant to you.
Source: Item 12 — Territory (FDD pages 74–79)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, there is no minimum Area of Protection guaranteed for a Shoppe. However, Carvel may negotiate an Area of Protection with a franchisee, with the size and scope detailed in the Franchise Agreement and determined on a case-by-case basis. The Area of Protection will not exceed a one-block radius for Shoppes in urban locations, defined as the downtown area of the 100 largest U.S. cities, or a one-mile radius for Shoppes in non-urban locations.
The factors Carvel considers when determining the size of an Area of Protection include current and projected market demand, demographics and population, median household income, the presence of other businesses, the location of competitors, traffic patterns, access and visibility, the location of other Shoppes, Carvel's future development plans, and other market conditions. The Area of Protection will be documented when Carvel accepts the location. If the franchisee defaults under the Franchise Agreement and fails to cure the default, Carvel has the right to reduce or eliminate the Area of Protection.
For Co-Branded Shoppes in Streetside Locations, franchisees will receive a territory with limited protected rights, referred to as an "Area of Protection." For these co-branded locations, Carvel will not establish or operate, nor license any other person to establish or operate, another Co-Branded Shoppe (other than a Swirl Shoppe) at a Streetside Location within the Area of Protection. However, Carvel retains the right to operate or license others to operate single-branded Shoppes, Swirl Shoppes, or Shoppes that do not include the exact combination of brands as the Co-Branded Shoppe inside or outside the Area of Protection. For Swirl Shoppes in Streetside Locations, Carvel will not establish or operate, nor license any other person to establish or operate, another Swirl Shoppe at a Streetside Location within the Area of Protection, but may operate or license single-branded Shoppes or Cinnabon Co-Branded Shoppes inside or outside the Area of Protection.
Carvel also retains the right to establish or license franchises and/or company-owned businesses offering similar products or services under the Proprietary Marks or any other marks anywhere, including near the franchisee's location. They may also produce and/or sell Approved Products through alternative channels of distribution, such as supermarkets, convenience stores, and e-commerce, located anywhere. These rights can impact a franchisee's potential market share and revenue, as Carvel can introduce competition near the franchised location. Prospective franchisees should carefully consider these factors and discuss them with Carvel before signing the Franchise Agreement.