Can Carvel require franchisees to purchase specific fixtures?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Proportion of Purchases Subject to Specifications. Currently, we estimate that your purchases from Approved Suppliers and otherwise under our Standards will be about 85% of the total purchases and lease of products and services needed to establish a Shoppe and about 90% of the total purchases and leases of products and services needed to operate a Shoppe. You must purchase at least 98% of your food-related products from Approved Suppliers; you may purchase up to 2% of your food-related purchases (such as milk, minor ingredients, and fruit) from other Suppliers.
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 must purchase and install all fixtures, furnishings, equipment, décor, and signs as directed by Carvel. These purchases are made at the franchisee's expense. Carvel also maintains control over the items used within the Carvel Shoppe, as franchisees cannot install any merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment, or utensils unless they have been approved in writing by Carvel.
Carvel also has the right to require that franchisees purchase or lease furniture, fixtures, equipment, and services that meet Carvel's specifications. These items may need to be a specific brand, kind, or model and be purchased or leased only from Approved Suppliers or a single source designated by Carvel. This gives Carvel significant control over the look and functionality of each franchise location, ensuring brand consistency.
Furthermore, Carvel estimates that purchases from Approved Suppliers and under their standards will be about 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, but may purchase up to 2% of their food-related purchases (such as milk, minor ingredients, and fruit) from other Suppliers. This high percentage indicates that franchisees have limited flexibility in sourcing products and must adhere closely to Carvel's approved vendors and standards.