What is the initial franchise term length for a standard Carvel franchise agreement?

According to Carvel's 2025 Franchise Disclosure Document, the length of the initial franchise term for a standard Carvel franchise agreement is 20 years. This is outlined in Section 2.1 of the Franchise Agreement. However, the initial term is 5 years for Express Shoppes, Hosted Express Shoppes, and Ice Cream Trucks, as detailed in Section 20.B of their respective agreements.

For a prospective franchisee, the 20-year initial term for a standard Carvel franchise provides a substantial period to establish and operate the business. This long-term commitment allows for greater stability and potential return on investment. However, franchisees should be aware of the obligations and responsibilities that extend throughout the entire term, as detailed in the Franchise Agreement.

It's important to note the shorter 5-year initial terms for Express Shoppes, Hosted Express Shoppes, and Ice Cream Trucks. This difference likely reflects the varying investment levels and operational models associated with these franchise types. Franchisees considering these options should carefully evaluate the implications of the shorter term, including renewal options and potential resale value.

Carvel also offers renewal options. Franchisees of standard locations can renew for one additional 20-year term, while Express Shoppes and Hosted Express Shoppes have the option of one additional five-year renewal term, provided they meet certain requirements. For Ice Cream Truck operators, Carvel may offer one additional five-year renewal term at their sole discretion. These renewal terms provide franchisees with the opportunity to extend their business operations, subject to compliance with Carvel's renewal requirements.