What are the potential consequences of failing to pay the Learning Management System License Fee for Carvel as described in Item 6?
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. |
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Item 6 outlines various fees, including the Learning Management System License Fee. This fee is currently $170 per year, but Carvel may change it annually by no more than the Allowed Adjustment. This fee is incurred if Carvel requires franchisees to license an electronic learning management system to participate in required training programs and access the manuals. The franchisee may be required to pay this fee to Carvel, an affiliate, or a third-party vendor.
While the document specifies the amount and purpose of the Learning Management System License Fee, it does not explicitly state the consequences of failing to pay this fee. However, other fees listed in Item 6, such as the Insufficient Funds Fee and Late Reporting Fee, include consequences like interest charges or additional fees for non-payment or late submission. It is reasonable to assume that similar penalties could apply to the Learning Management System License Fee.
Given the lack of specific details regarding the consequences of non-payment, a prospective Carvel franchisee should seek clarification from the franchisor. Specifically, they should inquire about any late payment penalties, interest charges, or potential disruptions to training program access that may result from failing to pay the Learning Management System License Fee on time. Understanding these potential consequences is crucial for managing the financial obligations of the franchise and maintaining good standing with Carvel.