What right of entry does Carvel want to have upon expiration or termination of the Lease?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
(ii) a provision that provides that upon the expiration or termination of this Agreement or upon your default under the Lease or under this Agreement, we will, without your or the landlord's further consent, have (a) a continuing right of entry into the Franchised Business, (b) the right to operate a Business at the Accepted Location, (c) the right, but not the obligation, to assume your interests under the existing terms, conditions and covenants of the Lease, and (d) should we assume your position under the Lease, the right to assign the Lease or sublet the premises to a third party which will operate a Business at the location;
(iii) a provision that provides that upon expiration or termination of the Lease, we will, without your or the landlord's further consent, have a continuing right of entry into the Franchised Business to remove Proprietary Products and any materials bearing the Marks;
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel seeks specific rights of entry to the franchised business location upon the expiration or termination of the franchise agreement or lease. Carvel mandates that franchisees use commercially reasonable efforts to ensure leases include provisions that protect Carvel's interests.
Specifically, Carvel wants the right to enter the premises to operate a business at the location, assume the franchisee's lease under its existing terms, and assign or sublet the premises to another Carvel franchisee. This ensures Carvel can maintain a presence in the market even if the original franchisee exits.
Additionally, Carvel requires the right to enter the franchised business to remove proprietary products and materials bearing Carvel's trademarks upon lease expiration or termination. This protects Carvel's brand and intellectual property by preventing unauthorized use of its products and branding after the franchise agreement ends. These stipulations are designed to give Carvel maximum control over the location and continued operation of a Carvel business, even after a franchisee's departure.