If a Carvel franchisee and their affiliates operate four or more franchised businesses, can Carvel require the franchisee to appoint one or more Directors of Operations?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Director of Operations. If you and your affiliates operate four or more Franchised Businesses, in addition to the Managers for each Franchised Business that you operate, we may require you to appoint one or more Managers with the responsibility of supervising and supporting multiple Franchised Businesses (each, a "Director of Operations").
- C. Qualifications. Each Manager and Director of Operations must successfully complete the Management Training Program, satisfy any other minimum standards we may require for their position, and complete additional training and On-Site Training as we may specify.
- D. Changes to Managers and Directors of Operations. You must inform us in writing of the identity of any Managers and Directors of Operations. You must notify us immediately of the death, disability, termination of employment, or replacement of any of your Managers (including any Director of Operations) and must designate a successor or acting Manager or Director of Operations within 30 days after the death, disability, or termination of the predecessor.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee and their affiliates operate four or more franchised businesses, Carvel has the option to require the franchisee to appoint one or more Directors of Operations. These individuals would be responsible for supervising and supporting multiple Carvel locations. This requirement is in addition to the existing requirement that each franchised business must employ at least two managers who have completed the Management Training Program.
Each Director of Operations must successfully complete the Management Training Program and meet any other minimum standards Carvel sets for the position. They may also need to complete additional training and on-site training as specified by Carvel. The franchisee must inform Carvel in writing of the identity of any appointed Managers and Directors of Operations.
Furthermore, the franchisee is obligated to notify Carvel immediately if a Manager or Director of Operations dies, becomes disabled, is terminated, or is replaced. In such cases, the franchisee must designate a successor or acting Manager or Director of Operations within 30 days of the event. This ensures continuity in the management and supervision of the Carvel franchises.