What are the potential benefits of engaging an advisor to assist with securing financing for a Carvel franchise as described in Item 10?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you and if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
We participate in the SBA's Franchise Directory. We may modify the Franchise Agreement, if necessary, to comply with SBA requirements for you to participate in certain SBA loan programs.
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel does not offer direct or indirect financing and does not guarantee any franchisee's financial obligations. However, Carvel may refer franchisees to leasing or financing companies that are not affiliated with them. Neither Carvel nor its affiliates receive any financial benefits from lenders for franchisee financing.
Carvel has the option to engage an advisor to provide consulting services to franchisees to assist them in securing financing. If Carvel engages an advisor, they may pay the advisor for their assistance to franchisees. However, Carvel will not be responsible for the consultant's services, and franchisees must sign the consultant's agreement if they choose to use their services. Franchisees are not required to participate in any financing program implemented by Carvel.
Carvel participates in the SBA's Franchise Directory and may modify the Franchise Agreement to comply with SBA requirements for franchisees to participate in certain SBA loan programs. This suggests that engaging an advisor could potentially streamline the financing process, particularly with SBA loans, by ensuring compliance and potentially improving the chances of loan approval. However, the FDD does not specify the exact benefits of using an advisor, so prospective franchisees should inquire with Carvel about the advisor's expertise and how they can specifically help with financing.