What is the maximum Allowed Adjustment by which Carvel can change the Sublease Administration Fee each year?
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. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee subleases a Shoppe from Carvel, they must pay a Sublease Administration Fee to compensate Carvel for administrative expenses. This fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations, and improvements. The Sublease Administration Fee is Carvel's then-current fee, which is currently $200 per month.
Carvel has the right to change the Sublease Administration Fee each year by no more than the Allowed Adjustment. The FDD does not specify the exact calculation or definition of the Allowed Adjustment.
As the FDD does not specify the exact amount or calculation method for the Allowed Adjustment, it is important that a prospective franchisee ask Carvel for more information about how this adjustment is determined. Understanding the potential range of this adjustment is crucial for accurately forecasting expenses and assessing the financial viability of the franchise.