Does the Carvel Receipts Agreement consider economic hardship a force majeure event?

According to Carvel's 2025 Franchise Disclosure Document, the Receipts Agreement explicitly states that a force majeure event does not include economic hardship. This means that if a Carvel franchisee experiences financial difficulties, changes in market conditions, or a lack of funds, these situations will not be considered valid reasons for non-performance under the agreement due to force majeure.

This exclusion has significant implications for prospective Carvel franchisees. If a franchisee's business suffers due to an economic downturn or market shifts, they will still be obligated to meet their financial and contractual obligations to Carvel. Unlike events such as natural disasters or government-mandated shutdowns, economic hardship will not excuse a franchisee's failure to perform.

Franchisees should be aware of this provision and carefully consider their financial stability and ability to withstand economic challenges before investing in a Carvel franchise. It is crucial to have a solid financial plan and sufficient capital to manage potential economic downturns, as Carvel will not consider these circumstances as valid reasons for relief from contractual obligations under the force majeure clause.