If Carvel engages an advisor to help with financing, who pays the advisor?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.
We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you and if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
Source: Item 10 — Financing (FDD pages 58–59)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel does not offer direct or indirect financing, nor do they guarantee any notes, leases, or obligations for franchisees. However, Carvel may refer franchisees to unaffiliated leasing or financing companies, from which Carvel and its affiliates receive no fees or financial benefits.
Specifically, Carvel may engage an advisor to provide consulting services to franchisees to assist them in securing financing. In this instance, Carvel states that they may pay the advisor for this assistance to franchisees.
However, Carvel will not be responsible for the consultant's services to the franchisee, and if a franchisee chooses to use the consultant, they must sign the consultant's form of agreement. Franchisees are not required to participate in any financing program implemented by Carvel. This arrangement is somewhat unusual, as typically the franchisee would bear the cost of any advisor they choose to engage.