If Carvel does not establish pricing requirements, who determines the prices charged at a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, if permitted by applicable law, establish maximum, minimum, or other pricing requirements with respect to the prices you may charge for Approved Products, including required participation in systemwide discount programs and promotions. If we do not establish such pricing requirements, then you will have the right to determine the prices you charge.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, if Carvel does not establish pricing requirements, the franchisee has the right to determine the prices they charge for approved products.
This means that Carvel franchisees have the autonomy to set their own prices, which can be a significant advantage. Franchisees can adjust prices based on local market conditions, competition, and their own cost structures. This flexibility allows them to maximize profitability and cater to the specific needs and preferences of their customer base.
However, it's important to note that Carvel retains the right to establish pricing requirements if permitted by applicable law. These requirements could include maximum or minimum prices, or mandatory participation in system-wide discount programs and promotions. Franchisees should stay informed about any changes to Carvel's pricing policies to ensure compliance and maintain a profitable business.