Does the Carvel Receipts Agreement allow for remedies to be exclusive of one another?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- f.
Remedies Non-Exclusive.
No remedy made available to any party by any of the provisions of this Agreement is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and in addition to every other available remedy.
- 19.2 Cumulative Rights and Remedies.
Except as otherwise stated in this Agreement, no right or remedy that the parties have under this Agreement is exclusive of any other right or remedy under this Agreement or under applicable law.
Each and every such remedy will be in addition to, and not in limitation of or substitution for, every other remedy available at law or in equity or by statute or otherwise.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Receipts Agreement specifies that the remedies available to either party are not intended to be exclusive of one another. Instead, each remedy is cumulative and in addition to every other remedy available. This means that Carvel has the ability to pursue multiple avenues of resolution simultaneously if a franchisee violates the agreement.
This non-exclusivity of remedies is a significant point for prospective Carvel franchisees. It provides Carvel with considerable flexibility in addressing any breaches or defaults by the franchisee. For instance, Carvel could pursue legal action while also imposing non-compliance fees or other contractual penalties. This approach is fairly standard in franchising, as it protects the franchisor's brand and system standards.
However, the agreement also states that, except as otherwise stated in the agreement, no right or remedy that the parties have under the agreement is exclusive of any other right or remedy under the agreement or under applicable law. Each and every such remedy will be in addition to, and not in limitation of or substitution for, every other remedy available at law or in equity or by statute or otherwise. This ensures that both Carvel and the franchisee have access to a full range of legal and contractual options to address any issues that may arise during the franchise term.