How is the Relocation Fee for a Carvel franchise calculated?
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 who relocates to a new site approved by Carvel must pay a Relocation Fee. This fee is calculated as 10% of the then-current Initial Franchise Fee. The Relocation Fee is due before the relocation takes place.
In addition to the Relocation Fee, Carvel also charges a Relocation Extension Fee of $1,500 per year if the term of the Franchise Agreement is extended (or a new agreement is entered into) to match the term of the new lease. This fee is also due before Carvel signs the relocation Franchise Agreement.
Prospective franchisees should be aware of these fees and factor them into their financial planning if they anticipate needing to relocate their Carvel franchise during the term of their agreement. Understanding the current Initial Franchise Fee is crucial for calculating the potential Relocation Fee. Franchisees should also consider the length of their new lease term, as this will determine the Relocation Extension Fee.