What is the relationship between GoTo Foods and Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We are an indirect, wholly-owned subsidiary of GoTo Foods LLC, a Delaware limited liability company formerly known as Focus Brands LLC ("GoTo Foods"). GoTo Foods was originally incorporated in Delaware as Focus Brands Inc. before it converted to a Delaware limited liability company on December 29, 2019. GoTo Foods shares our principal business address, has not conducted a business of the type that you will operate, and has not offered franchises in any line of business. GoTo Foods is the indirect parent company of six other franchise systems (see below).
We have entered into a management agreement with GoTo Foods for it to provide our franchisees with certain support and services that we are obligated to provide under their franchise agreements. GoTo Foods also acts as our franchise sales agent. We have agreed to pay management fees to GoTo Foods for these services. GoTo Foods may delegate certain of these responsibilities to our other affiliates. However, as the franchisor, we will be responsible and accountable to you to make sure that all services we promise to perform under your Franchise Agreement or other agreements you sign with us are performed in compliance with the applicable agreement, regardless of who performs these services on our behalf.
GoTo Systems guarantees our performance of obligations under our franchise agreements.
GoTo Foods is the indirect parent company to seven franchisors, including: us, Cinnabon Franchisor SPV LLC ("Cinnabon"), Auntie Anne's Franchisor SPV LLC ("Auntie Anne's") Schlotzsky's Franchisor SPV LLC ("Schlotzsky's"), Moe's Franchisor SPV LLC ("Moe's"), Jamba Juice Franchisor SPV LLC ("Jamba
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–24)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel is an indirect, wholly-owned subsidiary of GoTo Foods LLC. GoTo Foods is described as the indirect parent company to seven franchisors, including Carvel, Cinnabon Franchisor SPV LLC, Auntie Anne's Franchisor SPV LLC, Schlotzsky's Franchisor SPV LLC, Moe's Franchisor SPV LLC, Jamba Juice Franchisor SPV LLC, and McAlister's Franchisor SPV LLC.
GoTo Foods provides Carvel franchisees with certain support and services that Carvel is obligated to provide under the franchise agreements. GoTo Foods also acts as Carvel's franchise sales agent. Carvel pays management fees to GoTo Foods for these services, and GoTo Foods may delegate certain responsibilities to other affiliates. However, Carvel remains responsible and accountable to the franchisee for ensuring all services are performed in compliance with the Franchise Agreement.
Additionally, GoTo Systems LLC, a direct, wholly-owned subsidiary of GoTo Foods Funding LLC, guarantees Carvel's performance of obligations under its franchise agreements. This means that GoTo Systems provides a financial guarantee to Carvel franchisees, assuring that Carvel will fulfill its contractual obligations. FSC LLC, an indirect subsidiary of GoTo Foods, manages the supply chain for Carvel and other franchise systems within the GoTo Foods Portfolio, handling procurement, distribution, logistics, and quality assurance. GoTo Foods Rewards, Inc., another indirect subsidiary of GoTo Foods, administers the gift card program for Carvel Shoppes and other brands in the GoTo Foods Portfolio.
For a prospective Carvel franchisee, this relationship means that while Carvel is the franchisor, GoTo Foods plays a significant role in providing support services, managing the supply chain, and overseeing the gift card program. The franchisee will interact with GoTo Foods and its subsidiaries for various aspects of the business, and GoTo Systems provides a guarantee for Carvel's obligations, adding a layer of security for the franchisee.