Is Carvel required to have an independent audit of the Ad Fund completed?

According to the 2025 Carvel Franchise Disclosure Document, Carvel is not required to have an independent audit of its Ad Fund completed. While Carvel provides an annual summary of the Ad Fund expenditures upon request, the brand explicitly states it is not obligated to conduct an independent audit.

This means that prospective Carvel franchisees will not have the assurance of an independent third party verifying the accuracy and appropriateness of the Ad Fund's financial activities. While Carvel does provide a summary of expenditures, franchisees must rely on Carvel's internal accounting for the Ad Fund's management.

This arrangement is less transparent than if an independent audit were conducted, which is a fairly common practice in franchising. Franchisees may want to inquire further about Carvel's internal controls and processes for managing the Ad Fund to gain a better understanding of how their advertising contributions are being used.