If Carvel provides the Manuals electronically through a Learning Management System in the future, may Carvel require franchisees to pay a license fee to use the system?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
The Manuals contain mandatory and suggested specifications, standards, and operating procedures. The Manuals are confidential, remain our property, and must be kept secure. The Manuals are currently provided electronically at no cost to you. In the future, the Manuals, or portions of the Manuals, may be provided electronically through the Learning Management System. We may require you to pay a license fee to us, our affiliate, or a vendor in order to use such system. We will give you an opportunity to view the Manuals in the corporate office or at another agreed-upon location before you purchase a franchise, if you so request.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if the Manuals, or portions of them, are provided electronically through the Learning Management System in the future, Carvel may require franchisees to pay a license fee to use the system. This fee would be paid to Carvel, its affiliate, or a vendor.
This means that the cost of accessing the operational manuals could increase for franchisees if Carvel transitions to delivering them via the Learning Management System and imposes a license fee. Currently, the manuals are provided electronically at no cost. This potential shift could impact a franchisee's operating expenses.
Prospective franchisees should inquire about the likelihood of this transition, the potential cost of the license fee, and how it compares to the benefits of using the Learning Management System. Understanding these factors will help in assessing the overall financial implications of operating a Carvel franchise.