If the location for a Carvel franchise is not yet determined, where must the location be situated?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
5. SITE IDENTIFICATION AND ACQUISITION
- 5.1 Accepted Location. You must establish and operate the Franchised Business only at the Accepted Location. You will not conduct, and you will not permit the conduct of, any business from the Accepted Location other than the Franchised Business. You must obtain our prior written consent if you wish to co-brand the Franchised Business with another business. You will not conduct, and you will not permit the conduct of any, sale of Approved Products using the Marks at any location other than the Accepted Location (except for the Catering Services and Delivery Services described in Section 4.3) without our prior written consent. If we consent to operations away from your Accepted Location, you will have to execute a separate agreement concerning your mobile or satellite business operations, which may include limitations on the type of activities that you may conduct and may include additional or different financial terms.
- 5.2 Our Assistance. We may assist you in selecting a proposed site for your Franchised Business (a "Proposed Location"), but we are not obligated to do so. You should undertake your own investigation of any Proposed Location and should not rely on any information from us in selecting the Proposed Location.
- 5.3 Acceptance of Proposed Location. If you and we have agreed on an Accepted Location at the time we sign this Agreement, we will insert the Accepted Location into Schedule A. If you and we have not agreed on an Accepted Location at the time we sign this Agreement, you will select a Proposed Location that complies with our site selection criteria within the Site Selection Area. You will provide us with all material we request to evaluate the suitability of the Proposed Location for your Franchised Business along with a site plan for the Proposed Location. We will provide you with our acceptance or non-acceptance of the Proposed Location within 15 days after you deliver the last item of materials we request, and our determination will be final. If we accept the Proposed Location as the Accepted Location, you must sign standard documentation we prepare, which includes a general release, to document the Accepted Location. Our acceptance of any Proposed Location is our agreement that the Proposed Location satisfies our minimum site
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, if a location is not agreed upon when signing the Franchise Agreement, the franchisee must select a Proposed Location that aligns with Carvel's site selection criteria within the designated Site Selection Area. The franchisee is responsible for providing all necessary materials for Carvel to evaluate the suitability of the Proposed Location, including a site plan. Carvel will then provide its decision within 15 days of receiving all required materials, and this determination is final. If Carvel accepts the Proposed Location, it becomes the Accepted Location, and the franchisee must sign standard documentation, including a general release, to formally document the agreement.
Carvel may offer assistance in selecting a Proposed Location, but franchisees are ultimately responsible for conducting their own due diligence and investigation of any potential site. Carvel's acceptance of a Proposed Location only indicates that it meets the minimum site selection criteria and does not guarantee the success of the franchise at that location. This process ensures that all locations meet Carvel's standards, but the franchisee bears the risk of the location's performance.
It is important to note that the franchisee must establish and operate the Franchised Business only at the Accepted Location and cannot conduct any other business from that location without prior written consent from Carvel. Furthermore, the sale of Approved Products using Carvel's Marks is restricted to the Accepted Location, with exceptions only for Catering Services and Delivery Services as outlined in the Franchise Agreement. Any deviation from this requires a separate agreement with potentially different financial terms and limitations.