conditional

If a Carvel franchisee is required or elects to receive the Management Training Program for the third or subsequent Shoppe, must they pay the training fee for all Required Trainees to attend in a single training session?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

we have previously accepted.

On-Site Construction Inspection Fee. We may, in our sole discretion, inspect your site during construction. We will not charge for our first on-site inspection, but we may charge you an inspection fee of $2,500 for a second or subsequent inspection.

Training Fees. We will provide our Management Training Program to two Managers and any other individuals that we designate (the "Required Trainees") at no additional charge for the first two Shoppes that you or your affiliates operate. For the third and subsequent Shoppes that you or your affiliates operate, if we require you or you elect to receive the Management Training Program from us or our designee, you must pay us our then-current Management Training Program fee for all of your Required Trainees to attend in a single training session (currently, $3,000, except $5,000 for Co-Branded Shoppes and $1,000 for Express Shoppes). You must pay us a reasonable training fee that we designate (currently, $250 per additional trainee per day) if (i) you elect, and we permit you, to bring additional trainees, other than the Required

Source: Item 5 — Initial Fees (FDD pages 28–31)

What This Means (2025 FDD)

According to Carvel's 2025 Franchise Disclosure Document, for the first two Shoppes a franchisee operates, Carvel provides its Management Training Program to two managers and any other individuals Carvel designates (the "Required Trainees") at no additional charge. However, for the third and subsequent Shoppes that a Carvel franchisee operates, if Carvel requires or the franchisee elects to receive the Management Training Program, the franchisee must pay Carvel's then-current Management Training Program fee for all Required Trainees to attend in a single training session. The current fee is $3,000, except it is $5,000 for Co-Branded Shoppes and $1,000 for Express Shoppes.

If a Carvel franchisee elects, and Carvel permits, to bring additional trainees, other than the Required Trainees, to the Management Training Program, the franchisee must pay a reasonable training fee that Carvel designates (currently, $250 per additional trainee per day). The same fee applies if the Required Trainees are trained in separate sessions, or if any of the Required Trainees fail to successfully complete the Management Training Program and re-enroll in the program or are replaced with new trainees that enroll in the program.

This means that Carvel franchisees opening multiple locations need to budget for training expenses beyond the initial two Shoppes. The cost can vary significantly based on the type of Shoppe (Full, Co-Branded, or Express) and the number of trainees involved. Franchisees should carefully consider these training costs when planning their expansion strategy, as training fees can add a substantial expense, especially if additional training or separate sessions are needed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.