What is the maximum Area of Protection radius for a Carvel Shoppe in a non-urban location?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate your Area of Protection with you. The size and scope of the Area of Protection will be in the Franchise Agreement and will be determined on a case-by-case basis. The Area of Protection will not exceed a one-block radius for a Shoppe in an urban location (the downtown area of the 100 largest U.S. cities as measured by population as of the effective date of the Franchise Agreement) or a one-mile radius for a Shoppe in any non-urban location. There is no minimum Area of Protection for a Shoppe. The factors that we consider in determining the size of an Area of Protection include current and projected market demand, demographics and population based on our research and experience, median household income, presence of other businesses, location of competitors, traffic patterns, access and visibility, location of other Shoppes, our future development plans and other market conditions.
Source: Item 12 — Territory (FDD pages 74–79)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the maximum Area of Protection for a Carvel Shoppe in a non-urban location is a one-mile radius. The FDD specifies that the Area of Protection is determined on a case-by-case basis and is subject to negotiation with Carvel.
Several factors influence the size and scope of the Area of Protection, including market demand, demographics, population, median household income, the presence of other businesses, competitor locations, traffic patterns, accessibility, visibility, the location of other Carvel Shoppes, Carvel's future development plans, and other market conditions. This extensive list of considerations highlights that the one-mile radius is not guaranteed and could be smaller depending on the specific circumstances of the location.
It's important to note that the Area of Protection is not an exclusive territory. Carvel retains significant rights, including the right to establish or license franchises and/or company-owned businesses offering similar products or services, even near the franchisee's location. Additionally, the Area of Protection can be reduced or eliminated if the franchisee defaults under the Franchise Agreement and fails to cure the default. Prospective franchisees should carefully consider these factors and discuss the specific terms of the Area of Protection with Carvel before signing the Franchise Agreement.