Is Carvel obligated to assist a franchisee in selecting a proposed site?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Shoppes, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location. Our acceptance of the site is based on the site satisfying our minimum site selection criteria only and will not be construed as a representation or warranty that
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, while Carvel may offer assistance in selecting a site, they are not obligated to do so. However, Carvel will review the franchisee's selected location to ensure it meets the brand's minimum site criteria. The selected site must be approved by Carvel to become the 'Accepted Location,' and the franchisee cannot acquire the location until Carvel has accepted it.
If an 'Accepted Location' isn't agreed upon when the Franchise Agreement is signed, the franchisee is responsible for finding a site that meets Carvel's criteria within a specified geographic area. Carvel may require the franchisee to obtain a site selection analysis from an 'Approved Supplier' at a cost of $2,500 to $5,000. This analysis may include factors like traffic patterns, demographics, and competitor analysis.
Carvel considers factors such as population density, traffic flow, visibility, parking, household income, and local competition when evaluating potential sites. The document specifies that there is no set time limit for Carvel to approve or disapprove a site. The FDD also states that Carvel expects franchisees to retain an independent expert to evaluate the suitability of a proposed site and conduct their own investigation, disclaiming any responsibility for the success of the location.