What are 'Proprietary Goods' that a Carvel franchisee must purchase from Carvel, its affiliates, or designated Approved Suppliers?

According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to purchase specific items, known as 'Proprietary Goods,' from Carvel, its affiliates, or designated approved suppliers. These Proprietary Goods encompass a range of essential items necessary for operating a Carvel franchise.

The 'Proprietary Goods' that Carvel franchisees must purchase from Carvel, its affiliates, or designated Approved Suppliers include proprietary ingredients, proprietary products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging. This procurement requirement ensures that Carvel maintains consistency and quality across all franchise locations, protecting the brand's reputation and customer experience.

The FDD also states that Carvel has the right to establish specifications, require supplier approval, or designate approved suppliers for other goods beyond the 'Proprietary Goods'. These specifications are typically published in the manuals or in writing. If Carvel or its approved suppliers cannot provide the requested quantity and type of goods, they will make reasonable commercial efforts to allocate the available goods equitably among the businesses seeking to purchase them. Franchisees acknowledge that Carvel, its affiliates, and approved suppliers will not be liable if they cannot fulfill the franchisees' requests.