If required, what addendum is included in the Carvel Franchise Agreement as Schedule D?

According to Carvel's 2025 Franchise Disclosure Document, Schedule D of the Carvel Franchise Agreement is a State Law Addendum, if required. This addendum modifies the standard franchise agreement to comply with specific state laws. For example, the FDD includes a California Addendum to Franchise Agreement in recognition of the requirements of the California Franchise Investment Law and the California Franchise Relations Act. Similarly, there are addenda for Maryland, Minnesota, and North Dakota to comply with their respective franchise laws.

For a prospective Carvel franchisee, this means that the terms of the Franchise Agreement may vary depending on the state in which the franchise is located. These state-specific addenda address legal requirements that can impact various aspects of the franchise, such as initial fees, termination and renewal conditions, dispute resolution, and transfer rights. The presence of these addenda ensures that Carvel franchises comply with local regulations, which can differ significantly from state to state.

It is important for potential franchisees to carefully review Schedule D, if it is included, along with the rest of the Franchise Agreement, to understand their rights and obligations under the laws of their specific state. This review should ideally be conducted with the assistance of a legal professional experienced in franchise law to ensure full comprehension of the implications. For instance, the Maryland addendum specifies that initial fees may be deferred based on the franchisor's financial condition and modifies certain clauses related to termination and dispute resolution to comply with Maryland law.