What happens if a Carvel franchisee fails to comply with customer service standards?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
er materially from the terms of this Agreement; and (iii) our obligations and rights with respect to our various franchisees may differ materially from our obligations and rights with respect to you, without in any way affecting our rights with respect to you. You will have no right to require that we disclose any variation to you or that we grant you the same or a similar variation.
- 8.5 Ownership. You agree that we own all proprietary rights in and to the System and the Manuals. The Manuals will at all times remain our property and you and all your directors, officers, shareholders, partners, members, managers, employees, agents, independent contractors, and others who gain access to the Manuals and the information contained in the Manuals will treat the Manuals and the information in the Manuals as our Confidential Information (defined below).
- 8.6 Guest Relations. You must promptly address any guest contact requests that we send to you or customer complaints in accordance with our Standards as specified in the Manuals, including responding to and resolving such guest contacts and complaints in the manner and within the time periods specified in the Manuals. In addition to any other rights and remedies we
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees must address guest contact requests and customer complaints according to the standards in Carvel's manuals. If Carvel receives an excessive number of complaints about a franchisee's business, or if the franchisee fails to respond to or resolve guest contact requests or customer complaints within the time period specified in the manuals, Carvel may charge the franchisee a guest relations fee.
The guest relations fee is currently $30 for each excessive complaint or each complaint or contact request that is not responded to in a timely manner. Carvel may change the fee, the time period for responding to complaints, and the number of complaints deemed excessive. However, the fee may not change in any year by more than the Allowed Adjustment.
In addition to the guest relations fee, Carvel has other rights and remedies, including reimbursement of any costs or expenses related to responding to or resolving a contact or complaint on the franchisee's behalf. Franchisees should consult the Carvel manuals for specific details on customer service standards, complaint resolution procedures, and the definition of an "excessive" number of complaints.