Will Carvel provide an annual summary of the Ad Fund expenditures, and under what condition?

According to Carvel's 2025 Franchise Disclosure Document, Carvel will provide franchisees with an annual summary of the expenditures of the Ad Fund. However, this is only done if the franchisee makes a reasonable request for this information.

This means that Carvel franchisees are not automatically entitled to an annual report on how the Ad Fund is spent. Instead, they must proactively request this summary from Carvel. The FDD does not define what constitutes a 'reasonable request,' so it is important for prospective franchisees to clarify this with Carvel during their due diligence.

While Carvel provides an annual summary of expenditures if requested, the FDD also states that Carvel has sole authority to direct all advertising programs and promotions and uses of the Ad Fund. Carvel also retains sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. This means that while a franchisee can request a summary of how the funds are spent, they have no control over how those funds are allocated.