If Carvel modifies its menu, can franchisees be required to purchase additional equipment?

According to Carvel's 2025 Franchise Disclosure Document, Carvel franchisees may be required to purchase additional equipment if Carvel modifies its menu. The FDD states that franchisees must purchase and install all fixtures, furnishings, equipment, décor, and signs as directed by Carvel, and this includes purchasing additional equipment to prepare and store new menu items if the menu is modified.

This requirement means that a Carvel franchisee needs to be prepared for potential additional costs throughout the term of their franchise agreement if Carvel decides to introduce new products. These costs could be significant, depending on the equipment required, and franchisees will need to factor this into their financial planning. The franchisee does not have the option to refuse purchasing the new equipment if Carvel modifies its menu.

Furthermore, franchisees are restricted in their choice of suppliers for these additional equipment purchases. They must purchase these items only from an Approved Supplier unless Carvel specifies otherwise. This restriction ensures that all Carvel locations maintain a consistent standard of quality and appearance, but it also limits the franchisee's ability to shop around for the best prices. Therefore, franchisees should inquire about the typical frequency and cost of menu modifications and associated equipment upgrades to better understand the potential financial impact.