What is the range of the current Lease Renewal/Extension Review Fee for a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees may incur a Lease Renewal/Extension Review Fee. This fee is assessed when a franchisee renews their lease or the lease is extended for 12 months or more. Carvel's approval is required for the lease, and payment of the fee is at Carvel's discretion. The fee currently ranges from $500 for a lease term of two years or less, up to $2,000 for a term of five years or more.
This fee is intended to compensate Carvel for reviewing the lease to ensure it complies with the Franchise Agreement. However, the FDD states that Carvel's review of the lease will be limited to determining whether it complies with the Franchise Agreement. The fee amount can be changed by Carvel each year, but any change is subject to the 'Allowed Adjustment' as defined elsewhere in the FDD.
For a prospective Carvel franchisee, this means that lease renewals or extensions will likely involve an additional cost. It is important to factor this fee into the financial planning for the franchise, especially considering that the fee can vary based on the lease term and is subject to change. Franchisees should also be aware of the conditions under which this fee is applied, specifically the requirement for Carvel's approval of the lease and the potential for annual adjustments to the fee amount.