What happens to the Carvel Service Level Agreement if a franchisee sells or transfers the franchised business?

According to Carvel's 2025 Franchise Disclosure Document, if a franchisee sells or transfers their Carvel franchised business, the existing Service Level Agreement terminates. The individual or entity acquiring the franchise must then execute Carvel's current form of the Service Level Agreement.

This means that a prospective buyer cannot simply assume the existing agreement. Instead, they will be subject to the terms and conditions of Carvel's then-current agreement, which may differ from the original franchisee's agreement. These changes could involve different fees, service levels, or other obligations.

For a potential Carvel franchisee, this highlights the importance of understanding that the terms of the Service Level Agreement are subject to change upon the sale or transfer of the franchise. It would be prudent to review the current form of the Service Level Agreement to fully understand the obligations and responsibilities that will be in effect if they purchase an existing Carvel franchise.