What is the Relocation Extension Fee for Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Relocation Extension Fee | $1,500 per year that the term is extended. | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a franchisee relocates to a new site and Carvel agrees to extend the term of the Franchise Agreement (or enter into a new one) to match the term of the new lease, the franchisee must pay a Relocation Extension Fee. This fee is in addition to the standard Relocation Fee. The Relocation Extension Fee is $1,500 per year that the term is extended. This fee is due before Carvel signs the relocation Franchise Agreement.
In practical terms, this means that if a Carvel franchisee decides to move their location and needs to extend their franchise agreement to align with the new lease term, they will incur an additional cost of $1,500 for each year the agreement is extended. For example, if the new lease requires a five-year extension of the franchise agreement, the franchisee would pay $7,500 in Relocation Extension Fees.
This fee structure incentivizes franchisees to carefully consider the length of their new lease term when relocating, as it directly impacts the cost of extending the franchise agreement. It also allows Carvel to recoup some administrative and legal costs associated with modifying the franchise agreement to accommodate the relocation and extended term. Franchisees should factor this fee into their financial projections when evaluating the feasibility of relocating their Carvel franchise.