Can Carvel require franchisees to purchase specific Proprietary Ingredients?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the "Proprietary Goods") from us, our affiliates, or our designated Approved Suppliers. The Proprietary Goods include printed paper, paper products, and plastic products bearing our Proprietary Marks (including, for example, dishes, containers, cartons, bags, napkins, and packaging supplies). We may require you to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs and other merchandise and products bearing the Proprietary Marks ("Trademarked Product Lines") from us, our affiliates, or our designated Approved Suppliers. In addition, if we conduct test marketing to determine consumer trends and the salability of new food or non-food products and services, you may be required to purchase a reasonable quantity of test products we specify from designated Approved 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 are required to purchase Proprietary Ingredients from specific sources. Carvel maintains the right to mandate that franchisees procure Proprietary Ingredients, along with other products and supplies, that adhere to the brand's established specifications. These items must be purchased from Carvel, its affiliates, or designated Approved Suppliers.
This requirement extends to a range of items, including Proprietary Ingredients, Proprietary Products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging, collectively termed "Proprietary Goods." These goods also encompass printed paper, paper products, and plastic products that bear Carvel's Proprietary Marks, such as dishes, containers, cartons, bags, napkins, and packaging supplies.
Carvel also retains the option to require franchisees to purchase trademarked product lines, such as t-shirts, apparel, mugs, and other merchandise bearing the Proprietary Marks, from Carvel, its affiliates, or designated Approved Suppliers. Additionally, franchisees may be required to purchase test products from designated Approved Suppliers if Carvel conducts test marketing to assess consumer trends and the salability of new food or non-food products and services. This ensures brand consistency and quality control across all Carvel locations.