When is the payment due for the Carvel equipment package?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
y 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. | #### YOUR ESTIMATED INITIAL INVESTMENT: CINNABON CO-BRANDED SHOPPE 26 |
| 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 | $61,000 | $61,000 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and Build | $156,000 | $366,000 | As incurred | As arranged | Contractors |
| Out Costs 2 | |||||
| Permitting 3 | $2,100 | $10,500 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $78,000 | $265,000 | Lump sum | Before opening | Vendors |
| Millwork 5 | $20,800 | $60,000 | As incurred | Before opening | Contractors |
| Furniture 6 | $0 | $20,000 | As incurred | Before opening | Vendors |
| Menu Board, Graphics, and Interior Signage 7 | $10,400 | $14,700 | As incurred | Before opening | Vendors |
| Exterior Signage 8 | $1,560 | $35,000 | Lump sum | Before opening | Vendors |
| Computer System 9 | $10,500 | $32,000 | As incurred | Before opening | Vendors |
| Smallwares 10 | $10,400 | $16,000 | As incurred | Before opening | Vendors |
| TV/Music 11 | $1,100 | $3,200 | As incurred | Before opening | Vendors |
| Amount of | Expenditure | Method of | When | To Whom | |
| ---------------------------------------------------------------- | ----------- | ------------- | ------------- | --------------------- | ---------------------------------------- |
| Type of Expenditure | Low | High | Payment | Payments Are Due | Payment Will Be Made |
| Architect/Engineer 12 | $2,100 | $20,000 | As incurred | Before opening | Arch |
Source: Item 7 — Estimated Initial Investment (FDD pages 42–52)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the payment for the equipment package is due before opening. The method of payment is a lump sum, and payment will be made to vendors. The estimated cost for the equipment package varies depending on the type of Carvel shop. For a Carvel Ice Cream Truck, the equipment package is estimated to cost between $24,100 and $47,750. For a Carvel Express Shoppe, the cost is estimated between $12,800 and $30,300. For a Carvel Non-Traditional Shoppe, the cost is estimated between $23,900 and $79,570. For a Carvel Traditional Shoppe, the cost is estimated between $134,000 and $208,000. For a Carvel Co-Branded Shoppe, the cost is estimated between $78,000 and $265,000.
This means that a prospective Carvel franchisee must budget for this expense and have the funds available prior to the grand opening of their franchise. The specific amount will depend on the type of Carvel franchise they choose to operate. It is important to note that these are just estimates, and the actual cost may vary. It is also important to confirm which vendors Carvel approves and what payment methods they accept.
In the franchise industry, it is common for equipment package costs to be paid in a lump sum before opening, as this ensures the franchisee has all the necessary equipment to begin operations. Franchisees should carefully review the list of required equipment and obtain quotes from multiple vendors to ensure they are getting the best possible price. Understanding the payment schedule and approved vendor list is a crucial step in preparing for the launch of a Carvel franchise.
Prospective franchisees should also inquire with Carvel about any financing options that may be available to help cover the cost of the equipment package. Additionally, they should ask for a detailed breakdown of what is included in the equipment package to ensure they are not missing any essential items. Understanding these details will help franchisees make informed decisions and avoid unexpected expenses.