What reinstatement fee must a former Carvel franchisee pay to reinstate their franchise agreement?

According to Carvel's 2025 Franchise Disclosure Document, a former franchisee seeking reinstatement must meet several conditions. One of these conditions involves paying a reinstatement fee. This fee is calculated as 10% of the then-current initial franchise fee.

In practical terms, this means that if a franchisee's agreement is terminated and they wish to revive their Carvel franchise, they will need to pay this reinstatement fee in addition to addressing the initial cause of termination and covering any outstanding royalties or advertising contributions. The initial franchise fee can vary, so the reinstatement fee will fluctuate accordingly.

It's important for prospective franchisees to understand that reinstatement is not guaranteed simply by paying the fee. Carvel also requires the franchisee to cure the default that led to the termination, pay all outstanding fees, compensate Carvel for the use of its marks during the termination period, and agree to a refurbishment plan. This comprehensive process ensures that the franchisee is fully committed to meeting Carvel's standards before resuming operations.