If a Carvel lease is extended by the landlord for 12 months, is approval from Carvel required?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. | As incurred | We may charge you this fee if you fail to provide us with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution. The fee is payable for each month or partial month after the deadline, until you provide the documentation. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a Carvel franchisee's lease is extended by the landlord for a period of 12 months or more, the franchisee must obtain Carvel's approval of the lease. Carvel also has the discretion to charge a Lease Renewal/Extension Review Fee.
The Lease Renewal/Extension Review Fee currently ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. This fee is subject to change, but Carvel states that any changes will not exceed the Allowed Adjustment. Carvel's review of the lease will be limited to determining whether it complies with the Franchise Agreement.
Additionally, if a Carvel franchisee fails to provide Carvel with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution, Carvel may charge a Lease Documentation Late Fee. This fee is $500 per month (or partial month) until the documentation is provided. The fee is payable for each month or partial month after the deadline, until the franchisee provides the documentation.