To whom is the initial franchise fee for a Carvel Express Shoppe paid, and when is it due?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
$5,000 | $15,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 | $32,500 | $50,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Months 22 | | | | | | | Total Initial Investment 23 | $392,375 | $785,850 | | | |
YOUR ESTIMATED INITIAL INVESTMENT: EXPRESS SHOPPE
| Amount of E | xpenditure | When | To Whom |
|---|
Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the initial franchise fee for an Express Shoppe ranges from $10,500 to $10,500. This fee is paid to Carvel ('Us') at the signing of the Franchise Agreement.
This means that a prospective Carvel franchisee must pay the initial franchise fee upfront when they formally agree to the franchise terms. This fee grants the franchisee the right to operate a Carvel Express Shoppe under the Carvel brand and system. The FDD specifies that this is a lump sum payment.
It is important to note that this fee is generally non-refundable, as stated in Item 7. Therefore, potential franchisees should carefully consider their decision before signing the Franchise Agreement and paying the initial fee. They should also conduct thorough due diligence and seek professional advice to ensure they understand the obligations and risks associated with the franchise.