To whom do I pay the initial franchise fee for a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
$5,000 | $15,000 | As incurred | Before opening | Vendors | | Additional Funds - 3 | $32,500 | $50,000 | As incurred | As incurred | Us, employees, vendors, etc. | | Months 22 | | | | | | | Total Initial Investment 23 | $392,375 | $785,850 | | | |
YOUR ESTIMATED INITIAL INVESTMENT: EXPRESS SHOPPE
| Amount of E | xpenditure | When | To Whom | ||
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Method of Payment | Payments Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $10,500 | $10,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and Build | $2,650 | $32,000 | As incurred | Before opening | Contractors |
| Out Costs 2 | |||||
| Permitting 3 | $550 | $1,100 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $23,900 | $79,570 | Lump sum | Before opening | Vendors |
| Millwork 5 | $1,600 | $10,600 | As incurred | Before opening | Contractors |
| Furniture 6 | $0 | $1,100 | As incurred | Before opening | Vendors |
| Menu Board, Graphics and Interior Signage 7 | $550 | $1,600 | As incurred | Before opening | Vendors |
| Exterior Signage 8 | $1,600 | $4,300 | Lump sum | Before opening | Vendors |
| Computer System 9 | $10,500 | $20,000 | As incurred | Before opening | Vendors |
| Smallwares 10 | $650 | $1,290 | As incurred | Before opening | Vendors |
| TV/Music 11 | $1,300 | $1,400 | As incurred | Before opening | Vendors |
| Architect/Engineer 12 | $550 | $5,300 | As incurred | Before opening | Architect |
| Rent 13 | $500 | $2,000 | Monthly | As arranged | Lessors |
| Grand Opening | $3,000 | $7,500 | As incurred | Before opening | Vendors or |
| Marketing 14 | Us | ||||
| Legal and Accounting | $5,000 | $10,000 | As incurred | Before opening | Lawyers and accountants |
| Fees 15 | |||||
| Insurance 16 | $1,125 | $6,300 | As incurred | Before opening | Insurance companies |
| Misc. Opening | $500 | $1,500 | As incurred | Before opening | Vendors |
| Costs/Office Supplies 17 | |||||
| Security Deposits 18 | $0 | $500 | As incurred | As incurred | Utility companies; lessors |
| Management Training Program Fee 19 | $0 | $1,000 | As incurred | Before opening | Us |
| Travel and Living Expenses during Training 19 | $1,600 | $3,300 | As incurred | Before opening | Airlines, hotels and restaurants |
| On-Site Training Fee 20 | $0 | $1,300 | As incurred | Before opening | Us |
| Opening Inventory 21 | $5,000 | $9,600 | As incurred | Before opening | Vendors |
| Additional Funds – 3 Months 22 | $2,000 | $10,500 | As incurred | As incurred | Us, employees, vendors, etc. |
| Total Initial Investment 23, | $73,075 | $222,260 | , |
YOUR ESTIMATED INITIAL INVESTMENT: HOSTED EXPRESS SHOPPE
These figures do not include the cost of (i) any Host Facility that you may operate in the same space or (ii) any other surrounding facility.
| Amount of I | Expenditure | Method of | When | To Whom | |
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Payments Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $10,500 | $10,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and Build Out Costs 2 | $550 | $11,200 | As incurred | Before opening | Contractors |
| Equipment Package 4 | $12,800 | $30,300 | Lump sum | Before opening | Vendors |
| Millwork 5 | $1,600 | $5,300 | As incurred | Before opening | Contractors |
| Furniture 6 | $0 | $1,100 | As incurred | Before opening | Vendors |
| Menu Board, Graphics and Interior Signage 7 | $1,600 | $2,700 | As incurred | Before opening | Vendors |
| Exterior Signage 8 | $0 | $4,300 | Lump sum | Before opening | Vendors |
| Computer System 9 | $3,000 | $6,400 | As incurred | Before opening | Vendors |
| Smallwares 10 | $650 | $1,300 | As incurred | Before opening | Vendors |
| Grand Opening Marketing 14 | $3,000 | $7,500 | As incurred | Before opening | Vendors or Us |
| Legal and Accounting Fees 15 | $2,500 | $5,000 | As incurred | Before opening | Lawyers and accountants |
| Misc. Opening Costs/Office Supplies 17 | $0 | $500 | As incurred | Before opening | Vendors |
| Management Training | $0 | $1,000 | As incurred | Before opening | Us |
| Program Fee 19 | |||||
| Travel and Living Expenses during Training 19 | $1,600 | $3,300 | As incurred | Before opening | Airlines, hotels and restaurants |
| On-Site Training Fee 20 | $0 | $1,300 | As incurred | Before opening | Us |
| Opening Inventory 21 | $500 | $1,600 | As incurred | Before opening | Vendors |
| Additional Funds – 3 Months 22 | $500 | $6,500 | As incurred | As incurred | Us, employees, vendors, etc. |
| Total Initial Investment 23, 24 | $38,800 | $99,800 |
YOUR ESTIMATED INITIAL INVESTMENT: ICE CREAM TRUCK
| Amount of | Expenditure | Method of | When | To Whom | |
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Payments Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $5,500 | $5,500 | Lump sum | At signing of Franchise Agreement | Us |
| Truck Costs 25 | $69,000 | $185,700 | As incurred | Before opening | Contractors |
| Permitting 3 | $550 | $5,500 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $24,100 | $47,750 | Lump sum | Before opening | Vendors |
| Type of Expenditure | Amount of Expenditure | Method of Payment | When | To Whom Payment Will Be Made | |
| --- | --- | --- | --- | --- | --- |
| Low | Payments Are Due | ||||
| Menu Board, Graphics and | $550 | $1,600 | As incurred | Before opening | Vendors |
| Interior Signage7 | |||||
| Computer System9 | $10,500 | $20,000 | As incurred | Before opening | Vendors |
| Smallwares10 | $550 | $1,100 | As incurred | Before opening | Vendors |
| Architect/Engineer12 | $550 | $5,300 | As incurred | Before opening | Architect |
| Grand Opening Marketing14 | $3,000 | $7,500 | As incurred | Before opening | Vendors or Us |
| Legal and Accounting | $2,500 | $5,000 | As incurred | Before opening | Lawyers and |
| Fees15 | accountants | ||||
| Insurance16 | $1,125 | $6,300 | As incurred | Before opening | Insurance companies |
| Management Training | $0 | $3,000 | As incurred | Before opening | Us |
| Program Fee19 | |||||
| Travel and Living Expenses during Training19 | $4,100 | $6,300 | As incurred | Before opening | Airlines, hotels and restaurants |
| On-Site Training Fee20 | $0 | $5,300 | As incurred | Before opening | Us |
| Opening Inventory21 | $500 | $5,000 | As incurred | Before opening | Vendors |
| Additional Funds - 3 Months22 | $250 | $5,500 $122,775 $316,350 | As incurred | As incurred | Us, employees, vendors, etc. |
Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the initial franchise fee is paid to "Us," meaning Carvel itself. The amount of this fee varies depending on the type of Carvel franchise. For a standard Carvel Shoppe, the initial franchise fee ranges from $10,500 to $61,000. For a Co-Branded Shoppe, the initial franchise fee is $30,500, which covers the fee paid to Carvel, as well as a separate initial franchise fee of $30,500 paid to Cinnabon. These fees are due at the signing of the Franchise Agreement and are payable in a lump sum.
It is important to note that these fees are generally non-refundable, as stated in the explanatory notes of Item 7. This means that once the Franchise Agreement is signed and the fee is paid, a prospective Carvel franchisee will likely not receive a refund, even if they later decide not to proceed with opening the franchise. Therefore, it is crucial for potential franchisees to conduct thorough due diligence and seek professional advice before committing to the agreement and paying the initial franchise fee.
In addition to the initial franchise fee, prospective Carvel franchisees should also be aware of other initial investment costs, such as construction and build-out costs, equipment packages, and opening inventory. These costs can vary significantly depending on the location and type of Shoppe, and it is essential to carefully review all estimated expenses before making a decision about investing in a Carvel franchise.