What are the principal functions of the POS System that a Carvel franchisee must use?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
The Computer System includes a POS System that we specify, the principal functions of which are to manage permanent financial records of sales transactions at your Shoppe, cash control, inventory control, and menu and price change control, among other things. We will have independent electronic and manual access to certain information within the POS System and there are no contractual limitations on our right to access this information. We have developed interfaces with our preferred providers that facilitate this access. You must provide any assistance we require to integrate your POS System with our headquarters system at the earliest possible time and in the manner we prescribe. You must accurately, consistently, and completely record, structure, capture and provide all required information through your POS System in accordance with all applicable laws and protect such information as required.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the POS system's main functions include managing financial records of sales transactions, cash control, inventory control, and menu and price change control. Carvel will have independent electronic and manual access to certain information within the POS system, and there are no contractual limitations on Carvel's right to access this information. Franchisees must assist Carvel in integrating their POS system with Carvel's headquarters system.
The franchisee is responsible for accurately and consistently recording all required information through the POS system in accordance with all applicable laws and for protecting such information as required. Carvel may revise the specifications for the Computer System (including the POS System) from time to time, and franchisees are contractually required to make periodic upgrades and updates to the Computer System to remain in compliance with Carvel's standards.
If Carvel requires a franchisee to use a different POS System, the franchisee must stop using the old POS System, purchase the new POS System, sign any required software license agreement and any required maintenance/update agreements with the vendor, pay any related POS System Support Fees, and use the new POS System. Carvel can require franchisees to add, substitute or replace computer hardware, memory, ports, accessories, peripheral equipment, or software, or to replace their Computer System. There are no contractual limitations on the frequency or cost of a franchisee's obligation to upgrade and replace hardware and software for their Computer System.
To maintain a consistent reporting system, franchisees must purchase or lease and use a POS System specified by Carvel from a designated Approved Supplier. The initial cost to a franchisee for the POS System and related necessary equipment, including installation and activation, currently ranges from $8,800 to $14,200 under the CapEx Program, depending on the number of terminals, travel costs, and other logistical factors. Under the CapEx Program, franchisees must pay a monthly software license fee for the POS System that is currently $159 to $397 per month depending on their equipment configuration. If a franchisee chooses to lease the POS System under the HaaS Program, they must pay a monthly software license and hardware lease fee for the POS System that is currently $216 to $442 per month depending on their equipment configuration and a one-time $300 activation fee.