For a proposed site, can Carvel require a franchisee to obtain a site selection analysis from an Approved Supplier?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
t if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the m
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, Carvel may require a franchisee to obtain a site selection analysis from an Approved Supplier for a proposed site. This analysis may include factors such as traffic patterns, demographics, and competitors within the market. The franchisee is responsible for providing Carvel with a copy of this analysis.
The estimated cost for this site selection analysis ranges from $2,500 to $5,000. Carvel considers factors such as population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Carvel Shoppes, when determining whether to accept sites.
While Carvel may assist in selecting a proposed site, they are not obligated to do so. The document also states that Carvel disclaims any responsibility for the suitability of the Accepted Location, and their acceptance of the site is based only on the site satisfying their minimum site selection criteria. It is expected that the franchisee will retain an independent expert to evaluate the suitability of a proposed site and conduct an independent investigation of the site.