Does Carvel have the right to communicate with the proposed transferee's counsel regarding a transfer?

According to Carvel's 2025 Franchise Disclosure Document, Carvel retains the right to communicate with multiple parties involved in a franchise transfer. Specifically, Carvel has the right to communicate with the current franchisee, their counsel, and the proposed transferee regarding any aspect of the proposed transfer.

This provision grants Carvel broad authority to gather information and assess the suitability of the transfer. By communicating directly with the franchisee, their counsel, and the proposed transferee, Carvel can ensure that all parties understand the terms and conditions of the transfer and that the proposed transferee meets Carvel's standards. This communication helps Carvel to protect its brand and maintain consistency across its franchise network.

For a prospective Carvel franchisee, this means that if they decide to sell their franchise, Carvel will have the ability to directly engage with their legal counsel and the potential buyer. This ensures transparency and allows Carvel to address any concerns or questions that may arise during the transfer process. It also underscores the importance of selecting a qualified transferee who meets Carvel's requirements, as Carvel will be directly involved in evaluating the transferee's suitability.