What was the net value of Carvel's assets held for lease as of December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| pen SBRs $ 28,887 | |
|---|---|
| 2025 | $ 3,346 |
| -------------------------------- | -------------- |
| 2026 | 2,580 |
| 2027 | 2,436 |
| 2028 | 2,276 |
| 2029 | 2,083 |
| Thereafter | 16,166 |
| Deferred revenue for open SBRs | $ 28,887 |
Deferred revenue of
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the net value of assets held for lease as of December 29, 2024, was $261. The assets held for lease had a gross value of $4,794, but after accounting for accumulated depreciation of $4,533, the net value was $261.
These assets held for lease are largely comprised of satellite SBRs (Small Business Retailers) that Carvel leases to certain franchisees under month-to-month operating lease agreements. This arrangement means that Carvel retains ownership of these satellite locations and leases them out, which can provide a revenue stream for Carvel and an opportunity for franchisees to operate a Carvel business with potentially lower upfront capital investment.
For a prospective franchisee, this information is relevant because it shows that Carvel engages in leasing satellite SBR locations. A potential franchisee might inquire about the availability of these leased locations as an alternative to purchasing or leasing a traditional Carvel store. Understanding the terms of these month-to-month operating lease agreements, including rent, responsibilities for maintenance, and conditions for renewal, would be crucial for any franchisee considering this option.