What is the relationship between GoTo Systems LLC and GoTo Foods LLC concerning the Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
tems (see below).
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. GoTo Systems and GoTo Funding share our principal business address, have not conducted a business of the type that you will operate, and have not offered franchises in any line of business.
our principal place of business ("CL"), is an indirect subsidiary of GoTo Foods. CL was originally incorporated in New York as Carvel Corporation in 1946 before it reincorporated as a Delaware corporation in 1969. CL was converted to a Delaware limited liability company under the name Carvel LLC on December 29, 2019. CL is our predecessor and offered Carvel® franchises from
1947 to April 2017. CL has not offered franchises in any other line of business. CL was acquired by Roark Capital Group in October 2001 and became affiliated with GoTo Foods in 2004.
Affiliates That Provide Services to Franchisees
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.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–24)
What This Means (2025 FDD)
According to the 2025 Carvel FDD, GoTo Systems LLC and GoTo Foods LLC are related to the Carvel franchise as parent companies. Carvel is a direct, wholly-owned subsidiary of GoTo Systems LLC, which itself is a direct, wholly-owned subsidiary of GoTo Foods Funding LLC. GoTo Systems is an indirect, wholly-owned subsidiary of GoTo Foods LLC.
GoTo Foods LLC is the indirect parent company to seven franchisors, including Carvel. GoTo Foods provides Carvel franchisees with certain support and services that Carvel is obligated to provide under their franchise agreements and 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.
GoTo Systems LLC provides a guarantee for Carvel's performance of its obligations under the franchise agreements. This means that GoTo Systems LLC is financially responsible if Carvel fails to meet its obligations to its franchisees. For a prospective franchisee, this guarantee from GoTo Systems LLC could provide additional security, knowing that a larger entity stands behind Carvel's commitments.