Who is responsible for the expenses associated with installing acceptance systems for Customer Card Programs at a Carvel franchise?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You will, at your sole expense, promptly install at the Franchised Business any acceptance system for Customer Card Programs and/or hardware and software necessary for Customer Card Programs to operate with the Computer System.
You must also obtain any services and supplies we require in connection with Customer Card Programs and pay all fees charged by us, our affiliates, or our Approved Suppliers in connection with Customer Card Programs.
Any fees that we or our affiliates charge you related to Customer Card Programs will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the expenses associated with installing acceptance systems for Customer Card Programs. These programs include gift card, loyalty, credit card, and other payment programs that Carvel develops to promote the system.
This means that as a Carvel franchisee, you must pay for the installation of any systems or hardware and software required for these Customer Card Programs to operate with the Computer System. You are also responsible for obtaining any necessary services and supplies and paying all related fees charged by Carvel, its affiliates, or approved suppliers.
Carvel states that any fees charged by them or their affiliates for these programs will not exceed 110% of their actual costs and expenses. This arrangement is fairly standard in franchising, where franchisees typically bear the costs of implementing franchisor-mandated technology and programs.