What is the Ordering Support Fee for a Carvel franchise used for?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Ordering Support Fee.
We require you to pay to us, our affiliates, and/or one or more third parties that we designate, an ordering support fee, in an amount and at the times that we specify, for various ordering support services that we will provide or arrange for our affiliates or third parties to provide, such as services related to online and catering ordering platforms, call center(s), ordering and delivery management services, catering rewards program(s), and the costs and expenses of integrating such services with the Computer System (as defined in Section 12.8 (Computer System)) (the "Ordering Support Fee").
The fee will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
We periodically may add, delete, or otherwise modify the products and services that are included in the Ordering Support Fee.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Ordering Support Fee is used for various ordering support services. These services include those related to online and catering ordering platforms, call centers, ordering and delivery management services, and catering rewards programs. The fee also covers the costs and expenses of integrating these services with the Computer System, as defined in Section 12.8 of the document.
The Ordering Support Fee is paid to Carvel, its affiliates, or designated third parties, in amounts and at times specified by Carvel. The document states that the fee will not exceed 110% of Carvel's or its affiliates' actual costs and expenses related to these products or services. This suggests that Carvel aims to recover the costs associated with providing these support services without excessive markups.
Carvel retains the right to modify the products and services included in the Ordering Support Fee periodically, by adding, deleting, or otherwise changing them. This flexibility allows Carvel to adapt the support services to changing market conditions or technological advancements. As a prospective franchisee, it is important to stay informed about any changes to these services and how they might impact your business operations and costs.