What items are included in the definition of 'Proprietary Goods' that Carvel franchisees must purchase from approved sources?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the "Proprietary Goods") from us, our affiliates, or our designated Approved Suppliers. The Proprietary Goods include printed paper, paper products, and plastic products bearing our Proprietary Marks (including, for example, dishes, containers, cartons, bags, napkins, and packaging supplies). We may require you to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs and other merchandise and products bearing the Proprietary Marks ("Trademarked Product Lines") from us, our affiliates, or our designated Approved Suppliers. In addition, if we conduct test marketing to determine consumer trends and the salability of new food or non-food products and services, you may be required to purchase a reasonable quantity of test products we specify from designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 52–56)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to purchase 'Proprietary Goods' from Carvel, its affiliates, or designated approved suppliers. These 'Proprietary Goods' encompass a range of items critical to maintaining brand consistency and quality control. Specifically, these include Proprietary Ingredients, Proprietary Products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging. This ensures that all Carvel locations use standardized and approved items.
Furthermore, the definition of Proprietary Goods extends to printed paper, paper products, and plastic products that bear Carvel's Proprietary Marks. This includes items such as dishes, containers, cartons, bags, napkins, and packaging supplies. These branded items are essential for reinforcing brand recognition and customer experience. Carvel may also require franchisees to purchase certain trademarked product lines, such as t-shirts, apparel, mugs, and other merchandise bearing the Proprietary Marks, from approved sources.
In addition to the standard list of required items, Carvel retains the flexibility to introduce and test new products. If Carvel conducts test marketing to assess consumer trends and the salability of new food or non-food products and services, franchisees may be required to purchase a reasonable quantity of these test products from designated Approved Suppliers. This allows Carvel to gather real-world data on new offerings while ensuring franchisees are aligned with the brand's evolving strategy. This requirement ensures uniformity and quality across all Carvel franchise locations, while also allowing Carvel to test new products and maintain brand standards.