factual

How often can Carvel change the Lease Renewal/Extension Review Fee?

Carvel Franchise · 2025 FDD

Answer from 2025 FDD Document

Type of Fee1, 4 Amount Date Due Remarks
We may require you to pay the training fee again for the rescheduled training.
Learning Management System License Fee The then-current fee. Currently, $170 per year. As incurred We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment.
Sublease Administration Fee Our then-current fee. Currently, $200 per month. As incurred If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment.
Lease Renewal/ Extension Review Fee Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. As incurred If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment.

Source: Item 6 — OTHER FEES (FDD pages 31–42)

What This Means (2025 FDD)

According to Carvel's 2025 Franchise Disclosure Document, the Lease Renewal/Extension Review Fee can be changed annually, but the amount of the change is limited. Carvel states that it "may change this fee in any year by no more than the Allowed Adjustment."

The Lease Renewal/Extension Review Fee is incurred when a franchisee renews a lease or the lease is extended by the landlord for a period of 12 months or more. In these instances, the franchisee must obtain Carvel's approval of the lease and, if Carvel chooses, pay the Lease Renewal/Extension Review Fee.

The fee itself currently ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. The FDD specifies that Carvel's review of the lease will be limited to determining whether it complies with the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.