Is Carvel obligated to assist a franchisee in selecting a proposed site for their Franchised Business?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Our Assistance. We may assist you in selecting a proposed site for your Franchised Business (a "Proposed Location"), but we are not obligated to do so. You should undertake your own investigation of any Proposed Location and should not rely on any information from us in selecting the Proposed Location.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel may offer assistance in selecting a site for the Franchised Business, but they are not required to do so. The document states that the franchisee should conduct their own investigation of any potential location and not rely solely on information provided by Carvel. This means the responsibility for finding a suitable location largely falls on the franchisee.
While Carvel might provide some assistance, the final decision on the location rests with the franchisee, who must also bear the responsibility for their own due diligence. Carvel's acceptance of a proposed location only indicates that it meets their minimum site selection criteria and does not guarantee the success of the business at that location. This is a common practice in franchising, as the franchisee is typically the one managing the business and is therefore in the best position to assess the local market and potential customer base.
Prospective Carvel franchisees should carefully consider this aspect and be prepared to conduct thorough research on potential locations. This includes analyzing demographics, traffic patterns, competition, and other factors that could impact the success of the business. It would be prudent to clarify with Carvel the extent of site selection assistance they typically provide and what resources are available to franchisees for conducting their own research.