If Carvel obtains insurance coverage for a franchisee, what is the maximum amount the franchisee could be charged?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Taxes and Other Payments | Our costs and expenses | Within 10 days after demand | You must pay us or our affiliates (i) all sales taxes, corporate taxes, and any similar taxes paid by us on your behalf, imposed on us, or required to be collected by us on account of products or services we furnish to you (through sale, lease, or otherwise) or on account of our collection of any fee related to the Franchise Agreement; (ii) all franchise or similar taxes, whether based on gross receipts, gross revenues, Royalty Fees, Advertising Contributions, or otherwise, imposed on, required to be collected by, or paid by us; (iii) all marketplace facilitator or similar taxes imposed on, required to be collected by, or paid by us in connection with your use of our website, internet sites, applications, or online ordering platforms; (iv) all other amounts we pay or must pay for you for any reason; and (v) any other fees or expenses that we are entitled to collect from you. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
Based on the 2025 Carvel Franchise Disclosure Document, if Carvel obtains insurance coverage on behalf of a franchisee, the franchisee will be charged their costs and expenses.
This means that Carvel franchisees are responsible for reimbursing Carvel for the actual costs Carvel incurs to secure insurance coverage for the franchisee's business. The FDD does not specify a maximum amount, indicating that the cost will depend on the specific insurance policy and the franchisee's circumstances. This could include factors like location, coverage levels, and risk assessments.
As the cost is dependent on the actual expenses incurred by Carvel, prospective franchisees should inquire about the typical range of insurance costs for a Carvel franchise and what factors might influence those costs. Understanding these potential expenses is crucial for accurate financial planning.