What is the inspection or analysis fee a Carvel franchisee must pay for certain violations?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
luted, or contaminated Approved Products, eliminate their source, and remedy all unsanitary, unsafe, or otherwise hazardous conditions present. You may not resume operation of the Franchised Business until our laboratory analysis of your Approved Products or inspection of your Franchised Business, as applicable, demonstrates compliance with all applicable Laws and Standards. You must promptly implement any remedial measures we require to cure the default. If we conclude through any examination, analysis, and/or inspection that the Approved Products have been adulterated in any way or that your Franchised Business is not in compliance with applicable Laws, you shall, upon demand, reimburse us for all reasonable expenses connected with any such examination, analysis, or inspection under this Agreement (including reasonable product analysis fees).
- B. Additional Remedies. If: (i) we determine that a violation of Section 12.4.A. (Suspension of Operations) has occurred and that you have committed a similar violation within the one-year period before the date of the inspection or analysis; (ii) you fail or refuse to comply with any or all of the remedial measures we require; (iii) you fail to provide us with full cooperation in the course of any inspection or analysis we conduct; or (iv) we determine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees may be subject to an inspection or analysis fee of $5,000 under specific circumstances. This fee is in addition to covering the travel and living expenses of Carvel's inspectors or representatives, as well as any other expenses, including attorney's fees, that Carvel incurs during the inspection or analysis.
The $5,000 fee applies if Carvel determines that a franchisee has violated the suspension of operations rules (Section 12.4.A) and has committed a similar violation within the past year. It also applies if the franchisee fails to comply with required remedial measures, refuses to cooperate with an inspection or analysis, or repeats any violation under Section 12.4.A during the term of the agreement.
This fee is not the only financial penalty a Carvel franchisee might face for non-compliance. Carvel also reserves the right to charge non-compliance fees ranging from $25 to $500 per violation for failing to meet standards or any provision of the Franchise Agreement. These non-compliance fees can be specified in the manuals or in writing, and may be modified over time with written notice. They can also be charged repeatedly, even daily, if the non-compliance continues, and can vary based on the severity, number, and repetition of the defaults, with increases limited to the Allowed Adjustment in any calendar year.