How often can Carvel change the Sublease Administration Fee?
Carvel Franchise · 2025 FDDAnswer 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. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Sublease Administration Fee can be changed annually, with adjustments limited to the Allowed Adjustment. Currently, this fee is $200 per month. This fee applies if a franchisee subleases a Shoppe from Carvel and is intended to cover Carvel's administrative expenses related to the sublease. It is important to note that this fee is separate from other sublease-related costs such as rent, insurance, public utility charges, late fees, and expenses for alterations and improvements.
For a prospective Carvel franchisee, this means that the monthly Sublease Administration Fee of $200 could increase each year, although the increase is capped by the Allowed Adjustment. It is crucial for franchisees to factor in potential increases to this fee when budgeting and forecasting their expenses. Understanding the definition and calculation of the Allowed Adjustment is essential to accurately predict how this fee may change over time.
Franchisees should also be aware that this fee is in addition to all other costs associated with subleasing the property. Therefore, it's important to carefully review the sublease agreement to fully understand all financial obligations. The FDD does not specify the exact method for calculating the Allowed Adjustment, so prospective franchisees should seek clarification from Carvel regarding how this adjustment is determined to better anticipate potential changes to the Sublease Administration Fee.