What are the reasons that a Single-Branded Streetside Carvel Franchise would NOT be considered an Eligible Streetside Franchise for inclusion in Item 19's data?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
1. Of the 266 Single-Branded Streetside Franchises, 104 (39.1%) were Eligible Streetside Franchises that have data included in this Item 19. The Eligible Streetside Franchises do not include (i) 154 Single-Branded Streetside Franchises that did not use our designated POS System for all of Fiscal Year 2024; (ii) four Single-Branded Streetside Franchises that were operating and using our designated POS System but did not report sales in all 52 weeks of Fiscal Year 2024; and (iii) four Single-Branded Streetside Franchises that opened in Fiscal Year 2024. Three Single-Branded Streetside Franchises closed permanently in Fiscal Year 2024, all of which had been open for at least 12 months prior to closing.
Source: Item 19 — Financial Performance Representations (FDD pages 91–93)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Item 19 includes financial performance data specifically for Single-Branded Streetside Franchises that meet certain criteria to be considered "Eligible Streetside Franchises." This data is limited to locations that reported sales through Carvel's designated POS system for all 52 weeks of the 2024 fiscal year.
Several reasons would exclude a Single-Branded Streetside Carvel franchise from being classified as an Eligible Streetside Franchise. Specifically, if the franchise did not use Carvel's designated POS system for the entirety of the 2024 fiscal year, its data would not be included. Similarly, if a franchise used the designated POS system but failed to report sales for all 52 weeks of the fiscal year, its data would also be excluded. Additionally, any Single-Branded Streetside Carvel franchise that opened during the 2024 fiscal year would not be considered an Eligible Streetside Franchise for the purposes of Item 19's financial performance representation.
In 2024, out of 266 Single-Branded Streetside Franchises, only 104 (39.1%) met the criteria to be considered "Eligible Streetside Franchises" and have their data included in Item 19. This highlights that a significant portion of Carvel franchises were excluded from the financial performance data for various reasons, primarily related to POS system usage and consistent sales reporting throughout the year. Prospective franchisees should understand these limitations when reviewing the financial performance representations in Item 19.