When is the Relocation Fee due for a Carvel franchisee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Relocation Fee | 10% of the then- current Initial Franchise Fee. | Before your relocation | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| 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, a franchisee must pay the Relocation Fee before relocating to a new site that Carvel has accepted. The Relocation Fee is 10% of the then-current Initial Franchise Fee. In addition to the Relocation Fee, a franchisee may also have to pay a Relocation Extension Fee of $1,500 per year if Carvel agrees to extend the term of the Franchise Agreement (or enter into a new Franchise Agreement) to match the term of the new lease.
This means that if a Carvel franchisee wants to move their existing Carvel location, they will incur a fee equal to 10% of the initial franchise fee at that time. This fee must be paid before the relocation can occur. For example, if the initial franchise fee is $30,000 at the time of relocation, the relocation fee would be $3,000.
Furthermore, if the relocation requires an extension of the franchise agreement to align with the new lease term, Carvel charges an additional $1,500 per year for the extended term. This could significantly increase the costs associated with relocating a Carvel franchise, especially if a long lease term is involved. Franchisees should carefully consider these costs and negotiate lease terms accordingly to minimize the Relocation Extension Fee.