What is Carvel's role in the selection of a General Contractor for the buildout?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We will designate or pre-approve one or more licensed and insured general contractors (a "General Contractor") that you must engage, at your own expense, to complete your buildout, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose.
Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance. (Franchise Agreement, Section 6.1.A.)
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 will either designate or pre-approve one or more general contractors that the franchisee must engage to complete the buildout of their Carvel shop. The franchisee is responsible for the expense of the general contractor. However, Carvel may agree in writing to accept a general contractor proposed by the franchisee, in its sole discretion.
It is important to note that Carvel's designation, pre-approval, or acceptance of a general contractor does not constitute an endorsement of the contractor. Carvel is not liable for the general contractor's performance. This means that while Carvel provides a list or may approve a contractor, the franchisee bears the ultimate responsibility if the contractor fails to perform adequately.
This process is fairly common in franchising, as it allows the franchisor to maintain some control over the buildout process to ensure brand standards are met, while also allowing the franchisee some flexibility. Prospective Carvel franchisees should carefully consider the implications of this arrangement and perform their own due diligence on any general contractor they engage, even if the contractor is on Carvel's approved list.