If a Carvel franchisee relocates to a new site that Carvel has accepted, what fee is required?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Relocation Fee | 10% of the then- current Initial Franchise Fee. | Before your relocation | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended. | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must pay a Relocation Fee if they relocate to a new site that Carvel has accepted. This fee is equal to 10% of the then-current Initial Franchise Fee and is due before the relocation occurs.
In addition to the Relocation Fee, Carvel also charges a Relocation Extension Fee of $1,500 per year if the term of the Franchise Agreement is extended (or a new agreement is entered into) to match the term of the new lease. This fee is also due before Carvel signs the relocation Franchise Agreement.
These relocation fees can represent a significant cost for a Carvel franchisee, especially if the initial franchise fee is high or if the lease term extension is lengthy. Franchisees should carefully consider these costs when evaluating the potential benefits of relocating their Carvel store. It is important to note that these fees are in place to compensate Carvel for the administrative and legal work associated with approving and documenting the relocation.