Who is responsible for negotiating the terms of the Site Agreement for a Carvel franchise?

According to Carvel's 2025 Franchise Disclosure Document, the franchisee is solely responsible for negotiating the terms of the Site Agreement. This agreement encompasses the lease, sublease, or rental agreement (Lease) or purchase agreement (Purchase Agreement) for the location. The franchisee is also responsible for fulfilling the obligations outlined in the Site Agreement.

While Carvel places the onus of negotiation on the franchisee, they retain the right, but not the obligation, to review the Site Agreement before it is finalized. This review is to ensure that the agreement aligns with Carvel's requirements. The franchisee must provide Carvel with a copy of the signed Site Agreement, including all material terms.

This arrangement is fairly typical in the franchise industry, where franchisees usually bear the responsibility for securing and negotiating their location's lease or purchase. However, the franchisor's right to review the agreement provides a safeguard, ensuring that the location meets Carvel's standards and protects the brand's interests. Prospective franchisees should carefully consider this responsibility and factor in the costs of legal counsel or real estate expertise to assist in the negotiation process.