When relocating a Carvel franchise, what must a franchisee do regarding site agreements for the new location?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
5.4 Site Acquisition.
- A.
Acceptance and Execution of Site Agreement.
You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein, and any other additional documents you were required to sign with the Site Agreement, either: (i) after we sign this Agreement if we have identified the Accepted Location before we sign this Agreement, or (ii) immediately following the date we accept the location after we sign this Agreement.
Before you sign the Site Agreement, you must ensure that it meets the requirements of this Section 5.4.
We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with this Section 5.4.
- B.
Site Agreement Restrictions.
If you execute a Site Agreement, (i) you may not create any obligations on our behalf, grant any rights adverse to our rights, or agree to any other term that is inconsistent with any term of this Agreement; (ii) you must duly and timely perform all terms under the Site Agreement; and (iii) except as otherwise provided in this Agreement, you may not assign, encumber, or transfer the Site Agreement, or sublet all or any part of the Accepted Location, without our prior written approval, which approval will not be unreasonably withheld.
You must ensure that all Site Agreements comply with any terms set forth in the Manuals.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if Carvel approves the relocation of a franchised business, the franchisee must ensure that all site agreements for the new location comply with Section 5.4, which pertains to site acquisition. This means the franchisee needs to adhere to the guidelines and requirements Carvel has set forth for securing a location.
Specifically, the franchisee must deliver a copy of the signed lease, sublease, or other rental agreement (referred to as the "Lease") or purchase agreement (the "Purchase Agreement," and collectively with the Lease, the "Site Agreement") to Carvel. This delivery must occur with all material terms specified. The timing of this delivery depends on when the location is identified: if the location is known before the franchise agreement is signed, the agreement must be delivered after the franchise agreement is signed. If the location is identified after the franchise agreement is signed, the delivery must occur immediately after Carvel accepts the location.
Before signing any site agreement, the franchisee must ensure it meets the requirements outlined in Section 5.4. Carvel retains the right, but not the obligation, to review the site agreement before it is executed to verify compliance with these requirements. Furthermore, the franchisee cannot create any obligations on Carvel's behalf, grant any rights adverse to Carvel's rights, or agree to any term inconsistent with the franchise agreement. The franchisee must also diligently perform all terms under the site agreement and cannot assign, encumber, or transfer the site agreement, or sublet any part of the accepted location without Carvel's prior written approval, which will not be unreasonably withheld. Finally, all site agreements must comply with any terms set forth in Carvel's manuals.