Does Carvel require franchisees to use approved products?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
d leases, including from charging you for Goods we or our affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by manufacturers, Suppliers, or third parties. If we, our affiliates, or third parties acting under our direction arrange for manufacturers to sell the Goods directly to our Approved Suppliers to then sell them to you, then we or our affiliates will have the right to receive compensation or other consideration from the manufacturers, Approved Suppliers, and/or such third parties for these sales. We and our affiliates may use all amounts received from manufacturers, Suppliers, or third parties, whether or not based on your or other franchisees' actual or prospective dealings with them, without restriction for any purposes we or our affiliates deem appropriate.
- 7.2 Approved Products. You may offer in the Franchised Business to customers only the Approved Products that we have approved in writing. You must produce and sell all Approved Products we specify, including all menu items and other products and services that we require you to sell, as stated in the Manuals or otherwise, which are all part of the System. We may change these specifications periodically, and we may designate specific Approved Products as optional or mandatory. You must offer all Approved Products that we designate as mandatory.
You may not produce or offer any products (i) that we do not authorize you to produce or sell or (ii) that we direct you not to produce or sell. You may sell Approved Products only in the varieties, forms, and packages that we have approved. If we require you to produce any Approved Products, you must strictly follow our Recipes, using only those product components, ingredients, flavoring, and garnishes that meet our then-current Standards. If we require or authorize you to sell alcoholic beverages, you must obtain any necessary permits or licenses. You must maintain a sufficient supply of required Approved Products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).
7.3 Approval Process.
- A. Review Process. If you would like to offer products or use any Goods that we have not approved or to purchase or lease from a Supplier that we have not approved, you must submit a written request for approval and provide us with any information that we request.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to use approved products in their franchised businesses. Carvel specifies that franchisees may only offer 'Approved Products' that Carvel has approved in writing. These 'Approved Products' include ice cream, frozen desserts, other food and beverage products, and related services that Carvel approves, including desserts created using their proprietary formula mix. Carvel may also change these specifications periodically and designate specific 'Approved Products' as either optional or mandatory, with franchisees required to offer all products designated as mandatory.
Carvel franchisees are not allowed to produce or offer any products that Carvel has not authorized or has directed them not to sell. Furthermore, 'Approved Products' must be sold only in the varieties, forms, and packages that Carvel has approved. If Carvel requires franchisees to produce any 'Approved Products', they must strictly follow Carvel's recipes, using only the product components, ingredients, flavoring, and garnishes that meet Carvel's current standards. Franchisees must also maintain a sufficient supply of required 'Approved Products' to meet the inventory standards prescribed in the manuals or to meet reasonably anticipated customer demand.
Carvel retains the right to require that 'Approved Products', other products, proprietary ingredients, supplies, furniture, fixtures, equipment, and services meet the specifications that they establish. These items must be a specific brand, kind, or model and be purchased or leased only from 'Approved Suppliers' or a single source designated by Carvel, which may include Carvel or its affiliates. To the extent that Carvel establishes specifications, requires approval of suppliers, or designates 'Approved Suppliers' for particular goods, they will publish these requirements in the manuals or otherwise in writing.