If Carvel updates its specifications, Standards, or Manuals, what is a franchisee's obligation regarding adopting these changes?

According to Carvel's 2025 Franchise Disclosure Document, if Carvel provides notice of any changes to its specifications, Standards, or the Manuals, franchisees must immediately adopt any supplements to the Manuals that Carvel provides. This requirement is part of the Franchise Agreement, specifically Section 8.3.

This means that a Carvel franchisee is contractually obligated to stay current with any updates Carvel makes to its operational guidelines. These updates could cover various aspects of the business, such as product preparation, store layout, marketing strategies, or customer service protocols. The franchisee does not have the option to delay or refuse these changes; immediate adoption is mandatory.

For a prospective franchisee, this underscores the importance of understanding that the Carvel system is subject to change, and they must be prepared to adapt their business practices accordingly. Failing to comply with these updates could potentially lead to a breach of the franchise agreement and possible penalties. It is also important to note that the FDD does not specify how Carvel will provide notice of these changes, so it would be prudent for a prospective franchisee to clarify this process during their due diligence.