Does Carvel have the right to review a franchisee's Site Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein.
You will be solely responsible for negotiation of the terms of the Site Agreement and performance under the Site Agreement.
We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with our requirements. (Franchise Agreement, Section 5.4)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel has the right to review a franchisee's Site Agreement. Specifically, Carvel has the right, but not the obligation, to review a franchisee's Site Agreement, which includes the lease, sublease, or rental agreement for the location, or the purchase agreement, prior to its execution. This review is to verify the Site Agreement's compliance with Carvel's requirements.
This means that while Carvel does not have to review the Site Agreement, they can choose to do so. The franchisee is responsible for negotiating the terms and performing under the Site Agreement. However, franchisees must provide Carvel with a copy of the signed lease or purchase agreement with all material terms specified.
This clause protects Carvel by allowing them to ensure that the location's Site Agreement meets their standards before the franchisee commits to it. However, the ultimate responsibility for the Site Agreement lies with the franchisee. It is important for prospective franchisees to understand that Carvel's review does not guarantee the suitability or success of the location.