If a Carvel franchisee abandons the franchised business for five consecutive days without written consent, is this grounds for termination?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee abandoning the franchised business can be grounds for termination. Specifically, if a Carvel franchisee voluntarily suspends operation of the franchised business without prior written consent from Carvel for five or more consecutive business days when they were required to be open, Carvel has grounds to terminate the franchise agreement.

This clause protects Carvel from franchisees who might neglect their business, ensuring consistent operation and service to customers. It also allows Carvel to maintain the brand's reputation and standards. The requirement for written consent provides a mechanism for franchisees to communicate unforeseen circumstances that might cause a temporary closure, potentially avoiding termination if properly communicated and approved.

This type of clause is relatively standard in franchise agreements, as franchisors need to ensure consistent operation and protect their brand. Franchisees should be aware of this requirement and maintain open communication with Carvel to avoid potential issues. It is important to note the clause specifies 'business days on which you were required to operate,' suggesting that planned closures (e.g., for holidays) would not be considered abandonment.