What is the monthly Lease Documentation Late Fee for a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| 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 franchisee may incur a Lease Documentation Late Fee of $500 per month (or partial month). This fee is charged if the franchisee fails to provide Carvel with 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 even a partial month, after the 15-day deadline until the franchisee provides the required documentation. This means that even if the documentation is only a few days late in a given month, the full $500 fee applies for that month.
For a prospective Carvel franchisee, this highlights the importance of promptly providing all lease-related documents to Carvel. Failing to do so can result in a significant and recurring monthly fee, impacting the profitability of the franchise. Franchisees should establish a system to ensure timely submission of these documents to avoid incurring these late fees.