What is the purpose of the point-to-point encryption (P2PE) solutions that Carvel franchisees are required to use?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Shoppe, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. Full Shoppes and Express Shoppes will be required to use this designated POS System; Hosted Express Shoppes and Ice Cream Trucks may use another, approved POS System with prior approval from us. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 52–56)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to use designated Approved Suppliers for point-to-point encryption (P2PE) solutions. These P2PE solutions, which include both hardware and software, are used in conjunction with the Point of Sale (POS) system.
The primary purpose of these P2PE solutions is to provide secure and compliant payment processing services. This means that Carvel mandates these systems to protect customer payment information and ensure that all transactions meet industry standards for security.
Full Shoppes and Express Shoppes are required to use the designated POS System, while Hosted Express Shoppes and Ice Cream Trucks have the option to use another approved POS System, subject to prior approval from Carvel. This ensures a baseline level of security across all Carvel locations while allowing some flexibility for different business models. As a prospective franchisee, it's important to understand the specific POS system and P2PE requirements for your chosen shop type, as well as any associated costs for hardware, software, and ongoing support.