If Carvel changes the Intellectual Property, who is responsible for the cost of implementing the change?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4 Changes to the Intellectual Property.
We have the right, upon reasonable notice, to change, discontinue, or substitute for any of the Intellectual Property and to adopt entirely different or new Intellectual Property for use with the System without any liability to you, in our sole discretion.
You agree to implement any such change at your own expense within the time we reasonably specify.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel has the right to change its Intellectual Property. If Carvel decides to change, discontinue, or substitute any of its Intellectual Property, franchisees are responsible for implementing these changes at their own expense. Carvel will provide reasonable notice to franchisees regarding these changes and specify a reasonable timeframe for implementation.
This means that if Carvel updates its trademarks, copyrights, recipes, or other elements of its system, franchisees will bear the financial burden of updating signage, materials, and other aspects of their business to comply with the new standards. This could involve costs for new menus, uniforms, advertising materials, or even changes to the store's layout or design.
As a prospective franchisee, it's important to consider that these changes can occur at any time during the franchise term and that you will be obligated to pay for them. Therefore, it would be prudent to inquire about the frequency and potential costs associated with Intellectual Property changes during the term of the franchise agreement. Understanding the scope of potential future expenses is crucial for accurate financial planning.