If Carvel requires a change or upgrade to the Computer System, who bears the expense?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Acquisition and Operation. You must promptly purchase, lease and/or license and install at the Franchised Business, at your sole expense, the computerized point-of-sale system, computer and technology systems, mobile hardware, software, applications, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. fiber or cable), and other equipment that we require from time to time (the "Computer System"), all of which you must keep in good maintenance and repair. You must use the Computer System in accordance with our Standards. We have the right to retrieve all data from your Computer System that we deem appropriate, and we may require you to obtain, at your expense, polling services we specify from a supplier that we specify (which may be us or our affiliates). If it becomes advisable at any time, in our sole discretion, for us to change, upgrade, or discontinue use of any of the components of the Computer System, you will comply with our directions, at your expense, within a reasonable time after notice to you. We will have no liability or obligation whatsoever with respect to our requirement that you modify or discontinue use of any of the components of the Computer System or any unauthorized modifications to the Computer System that you make.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with changes or upgrades to the Computer System. The franchisee must purchase, lease, license, and install the Computer System at their sole expense. This includes the point-of-sale system, computer and technology systems, mobile hardware, software, applications, associated computer hardware, telephone lines, network connections, communications equipment, and high-speed internet access.
Specifically, if Carvel deems it advisable to change, upgrade, or discontinue any components of the Computer System, the franchisee must comply with Carvel's directions at their own expense within a reasonable time after receiving notice. Carvel assumes no liability for requiring modifications or discontinuing the use of any Computer System components, nor for any unauthorized modifications made by the franchisee.
This requirement means that a Carvel franchisee must be prepared to invest in and maintain the Computer System as directed by Carvel, including any necessary upgrades or changes. This could represent a significant ongoing cost in addition to the initial franchise fee and other startup expenses. Franchisees should factor in potential technology upgrade costs when assessing the overall financial viability of the franchise.