What is the maximum Lease Renewal/Extension Review Fee for a Carvel franchise?
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. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees may incur a Lease Renewal/Extension Review Fee. This fee is assessed when a franchisee renews their lease or the lease is extended by the landlord for a period of 12 months or more. Carvel's approval of the lease is required in these situations.
The amount of the Lease Renewal/Extension Review Fee varies depending on the length of the lease term. Currently, the fee ranges from $500 for a lease term of two years or less.
The maximum Lease Renewal/Extension Review Fee is $2,000 for a lease term of five years or more. Carvel retains the right to modify this fee in any year, but changes are limited to the Allowed Adjustment. The FDD states that Carvel's review of the lease will be limited to determining whether it complies with the Franchise Agreement.