How long does a Carvel franchisee have to dismiss an execution levied against the Franchised Business or property to avoid termination?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
arks, whether on a local, regional, or national scale; (iii) make, or have made, any material misrepresentation to us related to the Franchised Business or this Agreement; or (iv) knowingly maintain false books or records or submit any false reports to us related to the Franchised Business.
- D. You abandon the Franchised Business or otherwise voluntarily suspend operation of the Franchised Business without our prior written consent for five or more consecutive business days on which you were required to operate.
- E. Your interest (or your affiliate's interest) in the lease or sublease for the Accepted Location is terminated or expires or you (or your affiliate) otherwise lose possession of the Accepted Location.
- F. We send you two or more written notices of default under this Agreement for the same or a similar cause or reason in any consecutive 12-month period, whether or not cured.
- G. You: (i) become insolvent by reason of an inability to pay debts as they come due; (ii) are adjudicated bankrupt; (iii) file a petition for bankruptcy protection; (iv) are the debtor in an involuntary bankruptcy petition that is not dismissed within 60 days; (v) are the debtor in an assignment for the benefit of creditors that is not dismissed within 60 days; (vi) are the
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee has 60 days to dismiss an execution levied against their Franchised Business or property. Failure to do so within this timeframe can result in the termination of the franchise agreement. This falls under the conditions of default that Carvel can enforce.
This stipulation is important for prospective franchisees to understand, as it highlights the need to address legal and financial issues promptly. The 60-day window provides a limited time to resolve such matters to avoid potential termination of the franchise agreement. Franchisees should maintain open communication with Carvel and seek legal counsel if they encounter such issues.
This type of clause is relatively standard in franchise agreements, as franchisors seek to protect their brand and ensure the financial stability of their franchisees. The specific timeframe for resolution can vary among different franchise systems, but the underlying principle remains the same: franchisees must manage their business affairs responsibly to maintain their franchise rights.