What is the initial franchise fee for a Carvel Express Shoppe franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8. Section 3.1 (Initial Franchise Fee): The Initial Franchise Fee shall be equal to $5,500.
- 8. Section 3.1 (Initial Franchise Fee): The Initial Franchise Fee shall be equal to $10,500.
- 9. Section 3.2.A. (Royalty Fee):
The Royalty Fee shall be 6% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).
10. Section 3.2.B. (Advertising Contribution):
The Advertising Contribution shall be in an amount we determine, in our sole discretion, which when combined with the Local Marketing Obligation (as specified in Section 10.1.E. (Local Marketing Obligation)) shall not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, the initial franchise fee for a Carvel Express Shoppe is dependent on the type of Express Shoppe franchise. For a Carvel Hosted Express Shoppe, the initial franchise fee is $5,500. For a Carvel Express Shoppe, the initial franchise fee is $10,500.
It is important to note that these fees grant the franchisee the right to operate a Carvel franchise under the terms and conditions outlined in the franchise agreement for a specified initial term. The initial term for both Carvel Hosted Express Shoppes and Carvel Express Shoppes is 5 years, beginning on the date the franchised business opens.
In addition to the initial franchise fee, Carvel franchisees must also pay a royalty fee of 6% of net sales and an advertising contribution. The advertising contribution is determined by Carvel but when combined with the local marketing obligation, it shall not exceed 5% of the net sales of the franchised business.