Does Carvel have an obligation to resolve any perceived conflicts that might arise between Carvel franchisees and its affiliates' franchisees?

According to the 2025 Carvel Franchise Disclosure Document, Carvel does not have an obligation to resolve any perceived conflicts that might arise between Carvel franchisees and its affiliates' franchisees. Carvel's affiliates, including programs and other portfolio companies owned by Roark Capital Management, LLC, may operate and/or franchise businesses that sell similar goods or services to those that Carvel franchisees sell.

Carvel states that because these affiliated businesses are separate companies, they do not anticipate conflicts between Carvel franchisees and the franchisees of their affiliates regarding territory, customers, or support. However, the document explicitly states that Carvel has no obligation to resolve any perceived conflicts that might arise between these parties. This means that if a Carvel franchisee believes that an affiliate's franchisee is unfairly competing or causing issues, Carvel is not required to intervene or mediate the situation.

This lack of obligation could be a significant consideration for prospective franchisees. It highlights the importance of understanding the competitive landscape and potential conflicts that could arise from affiliated businesses. While Carvel does not expect conflicts, the FDD makes it clear that they will not take responsibility for resolving them if they do occur. Therefore, franchisees need to be prepared to address any such issues independently, potentially through legal or other means, which could incur additional costs and risks.