Can Carvel require franchisees to purchase specific equipment?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ntractor will not in any way be our endorsement of your architect or general contractor or render us liable for your architect's or general contractor's performance. When you refresh or remodel your Shoppe, we may require you to obtain, at your expense, a site survey and design solution from us, our affiliates, or a designated vendor.
You must purchase and install, at your expense, all fixtures, furnishings, equipment (including a Computer System), décor and signs, as we direct. If we modify our menu, we may require you to purchase additional equipment to prepare and store new menu items. You may not install on or about your Shoppe any merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment or utensils unless they have been approved by us in writing. You must purchase these items only from an Approved Supplier unless we specify otherwise.
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Shoppe, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. Full Shoppes and Express Shoppes will be required to use this designated POS System; Hosted Express Shoppes and Ice Cream Trucks may use another, approved POS System with prior approval from us. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
We require you to accept major credit cards (Visa, MasterCard, American Express, and Discover) and other major payment methods (such as Apple Pay and Google Pay) for customer purchases,
participate in our Gift Card and Loyalty Programs, and participate in our in-shop mobile and online ordering program. These programs may require that you invest in additional equipment and incur fees from the credit card processing vendors, gift card processing vendors, and other hardware and software vendors that we designate.
We require you to purchase and maintain specific types of insurance coverage as described in more detail in the Franchise Agreement and the Manuals from insurance companies that meet our minimum Standards. We also specify the minimum amounts of insurance coverage you must maintain. All insurance policies must name us and others we designate as additional insureds.
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 franchisees are required to purchase and install specific fixtures, furnishings, and equipment, including a computer system, as directed by Carvel. If Carvel modifies its menu, franchisees may be required to purchase additional equipment to prepare and store new menu items. All merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment, or utensils must be approved by Carvel in writing and purchased only from an Approved Supplier, unless otherwise specified.
Carvel requires franchisees to purchase most components of the Computer System from Approved Suppliers, including the POS system and certain software like the Learning Management System. Franchisees must also use designated Approved Suppliers for point-to-point encryption (P2PE) solutions. Full Shoppes and Express Shoppes must use the designated POS System, while Hosted Express Shoppes and Ice Cream Trucks may use another approved POS System with prior approval. Carvel may also require franchisees to maintain certain network connections, potentially through an approved or designated Internet Service Provider.
Furthermore, franchisees are required to accept major credit cards and participate in Carvel's Gift Card and Loyalty Programs, as well as the in-shop mobile and online ordering program. Participation in these programs may necessitate investment in additional equipment and incur fees from designated credit card processing vendors, gift card processing vendors, and other hardware and software vendors. Carvel estimates that purchases from Approved Suppliers will constitute approximately 85% of the total purchases and leases needed to establish a Shoppe and about 90% of the total purchases and leases needed to operate a Shoppe. Franchisees must purchase at least 98% of their food-related products from Approved Suppliers, with the option to purchase up to 2% of items like milk, minor ingredients, and fruit from other suppliers.