Can Carvel require a franchisee to obtain polling services for the Computer System from a specified supplier, and who might that supplier be?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly purchase, lease and/or license and install at the Franchised Business, at your sole expense, the computerized point-of-sale system, computer and technology systems, mobile hardware, software, applications, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. fiber or cable), and other equipment that we require from time to time (the "Computer System"), all of which you must keep in good maintenance and repair. You must use the Computer System in accordance with our Standards. We have the right to retrieve all data from your Computer System that we deem appropriate, and we may require you to obtain, at your expense, polling services we specify from a supplier that we specify (which may be us or our affiliates). If it becomes advisable at any time, in our sole discretion, for us to change, upgrade, or discontinue use of any of the components of the Computer System, you will comply with our directions, at your expense, within a reasonable time after notice to you. We will have no liability or obligation whatsoever with respect to our requirement that you modify or discontinue use of any of the components of the Computer System or any unauthorized modifications to the Computer System that you make.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel has the right to mandate that franchisees obtain polling services for their Computer System from a supplier that Carvel specifies. This supplier could be Carvel itself or one of its affiliates.
This requirement means that a Carvel franchisee might not be able to choose their own provider for these essential computer services. Instead, they must use the supplier designated by Carvel, potentially impacting costs and service quality. It is common in franchising for franchisors to exert control over key suppliers to maintain brand consistency and quality control, but it may limit a franchisee's autonomy.
Furthermore, Carvel or its affiliates may provide franchisees with project management assistance related to the Computer System, back office and polling services, required modifications and enhancements to the Computer System, and other maintenance and support programs. Carvel may require franchisees to enter into agreements with, and pay a reasonable fee to, Carvel, its affiliates, or Approved Suppliers for such services. Any fees that Carvel or its affiliates charge for modifications and enhancements to the Computer System and fees for third-party hardware or software will not exceed 110% of their actual costs and expenses related to such products or services.