Does Carvel provide any assurance or warranty regarding the potential success or profits of the franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
No Reliance on Contrary Representations.
You have no knowledge of any representations made about the franchise opportunity by us, our affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in our FDD or to the terms and conditions of this Agreement.
You are not relying on any representations or warranties, express or implied, furnished by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- D.
Financial Performance Representations.
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Business or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates.
Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
- 21.3 No Waiver or Disclaimer of Reliance in Certain States.
The following provision applies only to franchisees and Franchised Businesses that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel does not make any guarantees regarding the potential financial performance of a franchise, except as stated within the FDD. Specifically, neither Carvel, its affiliates, nor their representatives make any explicit or implicit representations about the historical revenues, earnings, or profitability of any existing business or the anticipated financial performance of a Carvel franchise.
Carvel clarifies that any financial information a prospective franchisee obtains from existing franchisees is not provided by Carvel, and Carvel makes no claims regarding the accuracy of such information. This means that potential franchisees should not rely on any revenue, earnings, or profit projections unless those projections are explicitly stated within the FDD itself.
However, the FDD also states that for franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin), no acknowledgement signed by the franchisee can disclaim reliance on any statement made by Carvel or its representatives. This provision aims to protect franchisees from unknowingly waiving their rights to claim reliance on representations made by Carvel, ensuring that franchisees in these states can still pursue claims if they believe they were misled, notwithstanding any acknowledgement they may have signed. This does not mean Carvel is providing assurance, but it does mean franchisees in those states retain certain rights regarding statements made during the franchise sales process.