Regarding financial performance, what representations are Carvel and its affiliates NOT making to potential franchisees, except as stated in the FDD?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as may be stated in the FDD, neither we, nor any of our affiliates, nor any of our or our affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Business or the anticipated revenues, earnings, or profitability of the business subject to the license or any other business operated by us, our licensees, our franchisees, or our affiliates.
Any information you have acquired from other franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel and its affiliates make no representations, either express or implied, about the historical revenues, earnings, or profitability of any existing Carvel Business. They also do not make any representations regarding the anticipated revenues, earnings, or profitability of the franchised business or any other business operated by Carvel, its licensees, franchisees, or affiliates, except as may be stated in the FDD.
This means that a prospective Carvel franchisee should not rely on any claims or promises about potential financial performance made by Carvel representatives, unless those claims are explicitly documented within the FDD. Any financial information a franchisee obtains from existing Carvel franchisees is not endorsed or validated by Carvel, and Carvel makes no representation about the accuracy of such information.
This disclaimer is a common practice in franchising. Franchisees must conduct their own independent financial analysis and due diligence, rather than relying on undocumented claims from the franchisor or other franchisees. Prospective franchisees should carefully review any financial performance representations that are included in Item 19 of the FDD and consult with a financial advisor before making any investment decisions. It is important to verify any claims with thorough market research and business planning.