Does Carvel provide written substantiation for the financial performance representations, and under what conditions?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Written substantiation for the financial performance representations will be made available to you on reasonable request.
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- We encourage you to consult with your own accounting, business, and legal advisors to assist you to prepare your budgets and projections, and to assess the likely or potential financial performance of your franchise. We also encourage you to contact existing franchisees to discuss their experiences with the system and their franchise business. Notwithstanding the information set forth in this financial performance representation, our existing franchisees are your best source of information about franchise operations.
Other than in this Item 19, we do not make any additional representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any additional representations either orally or in writing. If you receive any additional financial performance information or projections of your future income, you should report it to the franchisor's management by contacting the Legal Department, Carvel Franchisor SPV LLC, 5620 Glenridge Drive NE, Atlanta, GA 30342, 404-255-3250, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD pages 91–93)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel will provide written substantiation for the financial performance representations. This substantiation is available to prospective franchisees upon reasonable request. Carvel encourages potential franchisees to seek advice from accounting, business, and legal advisors to help them prepare budgets and assess the potential financial performance of a Carvel franchise.
The FDD emphasizes the importance of consulting with existing Carvel franchisees to gain insights into their experiences with the system and their franchise businesses. Carvel states that franchisees are the best source of information about franchise operations.
Carvel also clarifies that it does not make any additional representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, except as outlined in Item 19. Furthermore, Carvel does not authorize its employees or representatives to make any additional representations, either orally or in writing. The document advises franchisees to report any additional financial performance information or projections they receive to Carvel's management, the Federal Trade Commission, and the appropriate state regulatory agencies.