Can Carvel require franchisees to purchase project management assistance related to the Computer System from an approved supplier?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates may, in our sole discretion, provide you with, or require you to purchase from an Approved Supplier, (i) project management assistance related to, and coordinate the onboarding and configuration of, your Computer System before your Franchised Business opens or, if you are acquiring an existing Franchised Business, when you assume control of such Franchised Business; (ii) back office and polling services; (iii) required modifications and enhancements to the Computer System; and/or (iv) other maintenance and
support programs. We may require you to enter into agreements with, and pay a reasonable fee to, us, our affiliates, or Approved Suppliers for such services. The fees for such services may be increased in any calendar year by no more than the Allowed Adjustment. Any fees that we or our affiliates charge for modifications and enhancements to the Computer System and fees for thirdparty hardware or software will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel or its affiliates have the discretion to either provide franchisees with project management assistance related to the Computer System or require franchisees to purchase such assistance from an Approved Supplier. This assistance includes coordinating the onboarding and configuration of the Computer System before the Franchised Business opens or when a franchisee assumes control of an existing Franchised Business.
Carvel may also require franchisees to enter into agreements with and pay reasonable fees to Carvel, its affiliates, or Approved Suppliers for these services. The fees for these services can be increased each calendar year, but the increase cannot exceed the Allowed Adjustment.
Furthermore, any fees charged by Carvel or its affiliates for modifications and enhancements to the Computer System, as well as fees for third-party hardware or software, will not exceed 110% of their actual costs and expenses related to those products or services. This means that while Carvel can mandate the use of project management assistance and specific computer system components, they are also placing a limit on how much they can charge for these items.