What interest rate does Carvel charge on late payments?

According to Carvel's 2025 Franchise Disclosure Document, franchisees must pay interest on amounts not paid on time. The interest rate is 1.5% per month or any portion of a month that payment is late. However, the interest charged will not exceed the maximum interest rate permitted by applicable laws.

In addition to interest on past due amounts, Carvel may also charge a late reporting fee if franchisees fail to submit timely, complete, and accurate reports, financial statements, tax returns, and statements of initial investment costs. The late reporting fee is currently $50 per week for each report, statement, or return that is late. Carvel retains the right to increase this late reporting fee each calendar year, but the increase is limited to the Allowed Adjustment.

Carvel also has the right to change credit or payment terms at any time if, in their opinion, the franchisee's financial condition, previous payment record, or the nature of the franchisee's relationship with Carvel warrants such changes. Furthermore, if a franchisee is late in paying any obligation to Carvel or its affiliates, Carvel or its affiliates can apply any payment made by the franchisee to any obligation owed, regardless of any designation made by the franchisee to the contrary.