When does the Lease Documentation Late Fee apply to a Carvel franchisee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| We may require you to pay the training fee again for the rescheduled training. | |||
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. | As incurred | We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment. |
| Sublease Administration Fee | Our then-current fee. Currently, $200 per month. | As incurred | If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. | As incurred | We may charge you this fee if you fail to provide us with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution. The fee is payable for each month or partial month after the deadline, until you provide the documentation. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a Lease Documentation Late Fee of $500 per month (or partial month) is charged if a franchisee fails to provide a signed copy of any lease, modification, amendment, or renewal of a lease within 15 days after its execution. This fee is payable for each month or partial month after the deadline until the required documentation is provided to Carvel.
For a prospective Carvel franchisee, this means it is crucial to promptly submit all lease-related documents to Carvel after they are executed. Failing to do so within the 15-day window will result in a $500 late fee for each month (or part of a month) the documents are overdue. This can quickly add up and become a significant, avoidable expense.
It is important for franchisees to establish a system for tracking lease-related documents and deadlines to ensure timely submission. This could involve setting reminders, assigning responsibility to a specific team member, or utilizing project management software. Paying attention to this detail can save a Carvel franchisee a significant amount of money over the term of their franchise agreement.