What is the range of the Lease Renewal/Extension Review Fee for a Carvel franchisee?
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 currently ranges from $500 to $2,000, depending on the lease term. Specifically, a lease term of two years or less incurs a $500 fee, while a term of five years or more costs $2,000.
Carvel requires franchisees to obtain approval for lease renewals or extensions of 12 months or more. The Lease Renewal/Extension Review Fee is charged at Carvel's discretion. The FDD states that Carvel's review of the lease is limited to determining whether it complies with the Franchise Agreement.
It's important to note that Carvel can change this fee in any year, but no more than the Allowed Adjustment. Franchisees should factor this potential cost into their operating budget when considering lease renewals or extensions. This fee is in addition to rent and other charges under the lease.