Can Carvel require franchisees to purchase Goods as part of a purchasing program?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
se items. The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.
ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases. We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Shoppe: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved Suppliers; (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates); and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 52–56)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel has the right to require franchisees to purchase goods as part of a purchasing program, arrangement, or contract that they negotiate or specify. These goods include approved products, other products, proprietary ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services that franchisees purchase for resale or lease for use in their Shoppe.
Carvel may also require that these goods meet certain specifications, be a specific brand, kind, or model, be purchased or leased only from approved suppliers, or be purchased or leased only from a single source that Carvel designates, which may include Carvel or its affiliates or a buying cooperative organized by them. Carvel can add or change approved suppliers at any time.
Currently, Carvel has not arranged any purchasing programs among its franchisees, but they have the right to form purchasing programs at any time. If Carvel does form a purchasing program, franchisees must become a member by the specified deadlines, remain a member in good standing throughout the term of their Franchise Agreement, and pay all reasonable membership fees assessed by the purchasing program.