What is the initial franchise fee for a Carvel Ice Cream Truck franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
l to the average amount you paid per month to purchase Mix during the 36 months before the termination date times the lesser of the remainder of the Term or 36 months. If less than 36 months have lapsed between the Opening Date and the termination date, the liquidated damages will be the average amount you paid per month to purchase Mix during the time between the Opening Date and the termination date, multiplied by 36. If the termination occurs before the Opening Date, you will forfeit the Initial Franchise Fee paid and will not owe us any liquidated damages.
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Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the initial franchise fee for an Ice Cream Truck franchise is $5,500. This fee is payable upon signing the Franchise Agreement.
In addition to the initial franchise fee, Carvel franchisees must also pay a royalty fee of 6% of net sales. This royalty fee is paid weekly. Franchisees are also required to contribute to advertising, with the amount determined by Carvel, but it will not exceed 5% of net sales when combined with the local marketing obligation. This advertising contribution is also payable weekly.
Prospective franchisees should note that the initial franchise fee is just one component of the total investment required to start a Carvel Ice Cream Truck franchise. Other costs, such as the Ice Cream Truck acquisition and related equipment, site agreements, and initial inventory, must also be considered. It is important to carefully review all costs outlined in the FDD and to discuss any questions or concerns with the franchisor before making a final decision.
Furthermore, the FDD includes addenda for franchisees in Maryland and Minnesota, modifying certain terms of the agreement to comply with state franchise laws. For example, in Maryland, all initial fees and payments are deferred until Carvel completes its pre-opening obligations. Franchisees in these states should carefully review these addenda to understand how the franchise agreement may differ from the standard agreement.