What is the relationship between GoTo Funding LLC and GoTo Foods LLC concerning the Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We are a direct, wholly-owned subsidiary of GoTo Foods Systems LLC ("GoTo Systems"), a Delaware limited liability company formerly known as Focus Brands Systems LLC. GoTo Systems is a direct, wholly-owned subsidiary of GoTo Foods Funding LLC ("GoTo Funding"), a Delaware limited liability company formerly known as Focus Brands Funding LLC. GoTo Systems is an indirect, wholly-owned subsidiary of GoTo Foods.
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.
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, GoTo Funding LLC is the direct parent company of GoTo Systems LLC, which in turn is a direct, wholly-owned subsidiary of GoTo Foods LLC. This means that GoTo Funding is an indirect parent company of Carvel, as Carvel is a wholly-owned subsidiary of GoTo Systems LLC.
GoTo Foods LLC provides Carvel franchisees with certain support and services that Carvel is obligated to provide under the franchise agreements. GoTo Foods LLC also acts as Carvel's franchise sales agent. Carvel pays management fees to GoTo Foods LLC for these services, and GoTo Foods LLC may delegate certain responsibilities to other affiliates. However, Carvel remains responsible and accountable to the franchisee for ensuring that all services promised under the Franchise Agreement are performed, regardless of who performs them on Carvel's behalf.
In summary, GoTo Funding LLC sits higher in the organizational structure as an indirect parent, while GoTo Foods LLC has a more direct operational role in supporting the Carvel franchise system through management services and acting as the franchise sales agent.