What reports are Carvel franchisees required to submit, and how often?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We may make bank drafts based on the reports required under Section 14 (Right to Access; Records; Reporting), the data of the point-of-sale system and other equipment provided for in Section 12.8 (Computer System), the results of an audit, or the payment obligations specified in this Agreement or any other agreement between you and us or our affiliates.
If you fail to report the Net Sales of the Franchised Business to us for any reporting period as required in this Agreement, we have the right to make bank transfers or drafts for Royalty Fees and Advertising Contributions based on our reasonable estimate of the amounts for the Franchised Business and/or the data of the point-of-sale system and other equipment provided for in Section 12.8.
- 3.5 Interest.
You must pay us interest on amounts not paid on time at the rate of 1.5% per month or portion of a month, but not more than the maximum interest rate permitted by applicable laws.
- 3.6 Late Reporting Fee.
If you fail to submit
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to submit reports, and Carvel may make bank drafts based on these reports. These reports are required under Section 14, which pertains to the right to access records and reporting.
If a Carvel franchisee fails to report their Net Sales for any reporting period as required by the Franchise Agreement, Carvel has the right to make bank transfers or drafts for Royalty Fees and Advertising Contributions. These drafts will be based on Carvel's reasonable estimate of the amounts for the Franchised Business and/or the data from the point-of-sale system and other equipment.
If a Carvel franchisee fails to submit reports on time, they may incur additional costs. Specifically, interest will be charged on amounts not paid on time at a rate of 1.5% per month, or the maximum interest rate permitted by applicable laws, if lower. Additionally, there may be a late reporting fee applied for failing to submit reports on time, although the specific amount of this fee is not detailed in this section.