How is the Relocation Fee for a Carvel franchisee 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 their store to a new site that Carvel has approved 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 franchisee relocates to the new site.
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 due before Carvel signs the relocation Franchise Agreement.
For a prospective Carvel franchisee, it's important to factor in these relocation-related fees when considering moving their store to a new location. The Relocation Fee, being a percentage of the initial franchise fee, could be a substantial amount, and the Relocation Extension Fee adds an additional cost if the franchise agreement term needs to be adjusted. Franchisees should carefully evaluate the costs and benefits of relocation before making a decision.