factual

If Carvel has not yet accepted a site for my Shoppe when the Franchise Agreement is executed, what must I do?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

Your Shoppe may only be operated at the Accepted Location. If we have not yet accepted a site for the Shoppe when we execute the Franchise Agreement, you must select a location that we accept in accordance with our site selection criteria within a site selection area that we specify. We will determine the site selection area on a case-by-case basis. You will have no exclusive or protected rights in your site selection area.

Source: Item 12 — Territory (FDD pages 74–79)

What This Means (2025 FDD)

According to Carvel's 2025 Franchise Disclosure Document, if a site for your Shoppe has not been accepted when the Franchise Agreement is executed, you must select a location that Carvel accepts. This location must align with Carvel's site selection criteria and be within a site selection area that Carvel specifies. Carvel determines the site selection area on a case-by-case basis.

It's important to note that you will not have any exclusive or protected rights within your site selection area. This means that even while you are searching for a suitable location, Carvel could approve other franchisees or even open company-owned stores in the same general area. This lack of exclusivity is a notable factor for prospective franchisees to consider, as it directly impacts the competitive landscape they will be entering.

Once you and Carvel agree on a site, it becomes the "Accepted Location." You will then sign an addendum to the Franchise Agreement to formally modify the agreement to reflect the specific site. This addendum legally establishes the approved location for your Carvel Shoppe. Therefore, site selection is a collaborative process with specific criteria and no guarantees of exclusivity during the selection phase.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.