Does Carvel have the obligation to review a franchisee's Site Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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Site Agreement.** You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein.
You will be solely responsible for negotiation of the terms of the Site Agreement and performance under the Site Agreement.
We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with our requirements. (Franchise Agreement, Section 5.4)
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 does not have an obligation to review a franchisee's Site Agreement, they do have the right to do so. Specifically, Carvel has the right to review the lease, sublease, or purchase agreement for the location to verify its compliance with their requirements. The franchisee is solely responsible for negotiating the terms and performance of the Site Agreement.
This means that while Carvel may offer guidance, the onus is on the franchisee to secure a location and negotiate terms that are favorable and meet Carvel's standards. The franchisee must provide Carvel with a copy of the signed lease or purchase agreement with all material terms specified.
This is a common practice in franchising, where the franchisee bears the responsibility for site selection and lease negotiation, but the franchisor retains the right to ensure the location meets brand standards. It is important for a prospective Carvel franchisee to understand Carvel's site requirements and to seek legal and real estate expertise when negotiating a Site Agreement.