Can Carvel require a franchisee to purchase, license, or lease additional hardware or software for the POS system?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We or the POS System vendor may require you to purchase, license, or lease additional hardware or software. In addition, you may incur additional expenses if you require or would like additional equipment, training, or installation services.
You must provide financial and business records and information to us according to reporting formats, methodologies and time schedules that we establish. As part of these record keeping requirements, you must install computerized Shoppe management systems meeting our Standards, as modified in response to business, operations and marketing conditions. Accordingly, you must promptly purchase, lease and/or license and install at the Shoppe, at your sole expense, the POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that we require from time to time (collectively, the "Computer System"), all of which you must keep in good maintenance and repair. We estimate the total cost of the Computer System will be $10,500 to $32,000 for a Full Shoppe and $10,500 to $20,000 for an Express Shoppe ($3,000 to $6,400 for a Hosted Express Shoppe) or an Ice Cream Truck. For a Co-Branded Shoppe, the Computer System that we require meets both our and the Co-Branded Franchisor's standards. You may incur additional expenses if you require additional equipment, training, or installation services. We may require you to purchase, license, or lease additional hardware or software.
We may revise our specifications for the Computer System (including the POS System) from time to time. You are contractually required to make periodic upgrades and updates to the Computer System to remain in compliance with our Standards. 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 or the model of POS System, you will comply with our directions, at your expense, within a reasonable time after notice to you. If we require you to use a different POS System, you must stop using the old POS System, purchase the new POS System, sign any required software license agreement and any required maintenance/update agreements with the vendor, pay any related POS System Support Fees, and use the new POS System. We can require you to add, substitute or replace computer hardware, memory, ports, accessories, peripheral equipment, or software, or to replace your Computer System. There are no contractual limitations on the frequency or cost of your obligation to upgrade and replace hardware and software for your Computer System.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel or the POS System vendor may require franchisees to purchase, license, or lease additional hardware or software for the POS system. Franchisees may also incur additional expenses for extra equipment, training, or installation services.
Carvel franchisees must install computerized Shoppe management systems that meet Carvel's standards, which may change based on business, operations, and marketing conditions. Franchisees are responsible for purchasing, leasing, and installing the POS System, computer systems, mobile hardware, software, associated computer hardware, telephone lines, network connections, communications equipment, high-speed internet access, and credit card processing equipment. The estimated total cost for the Computer System ranges from $10,500 to $32,000 for a Full Shoppe and $10,500 to $20,000 for an Express Shoppe ($3,000 to $6,400 for a Hosted Express Shoppe) or an Ice Cream Truck.
Carvel may revise its specifications for the Computer System, including the POS System, and franchisees are contractually required to make periodic upgrades and updates to remain compliant with Carvel's standards. If Carvel decides to change, upgrade, or discontinue any components of the Computer System or the POS System model, franchisees must comply at their own expense within a reasonable time after notice. This includes stopping the use of the old POS system, purchasing a new one, signing required agreements, paying related fees, and using the new system. Carvel can also require franchisees to add, substitute, or replace computer hardware, memory, ports, accessories, peripheral equipment, or software, or to replace the entire Computer System. There are no contractual limitations on the frequency or cost of these upgrades and replacements.