How is Section 17.2 (Our Termination; No Opportunity to Cure) amended in the Carvel FDD?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- J. Section 17.2 (Our Termination: No Opportunity to Cure) is amended by adding the following new Section 17.2.M.:
- 17.2.M. Your Co-Branded Agreement terminates or expires or you for any other reason cease to operate the Co-Branded Franchise at the Accepted Location.
- R. Section 17.2 (Our Termination; No Opportunity to Cure) is hereby amended by adding the following Section 17.2.M. and 17.2.N.:
17.2.M. If you fail to comply with any of the terms of the franchise agreement for the Host Facility or your franchise agreement for the Host Facility is terminated or expires.
17.2.N. If the Host Facility's brand deteriorates in quality or reputation such that, in our sole judgment, our association with the Host Facility's brand is damaging or may damage the Carvel brand or the Marks.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, Section 17.2, which pertains to Carvel's right to terminate the agreement without allowing the franchisee an opportunity to cure, is amended under specific circumstances. For franchisees operating a co-branded location, a new section 17.2.M is added, stipulating that the franchise agreement can be terminated if the Co-Branded Agreement terminates or expires, or if the franchisee ceases to operate the Co-Branded Franchise at the Accepted Location for any reason.
For franchisees operating an Express Shoppe within a Host Facility, Section 17.2 is amended by adding sections 17.2.M and 17.2.N. Section 17.2.M allows Carvel to terminate the franchise agreement if the franchisee fails to comply with the terms of the franchise agreement for the Host Facility, or if the Host Facility's franchise agreement is terminated or expires. Section 17.2.N allows Carvel to terminate the franchise agreement if the Host Facility's brand deteriorates in quality or reputation, such that Carvel's association with the Host Facility's brand is damaging or may damage the Carvel brand or the Marks.
These amendments to Section 17.2 highlight the importance of maintaining both the Carvel franchise and any co-branding or host facility agreements in good standing. A Carvel franchisee should carefully review the terms of their franchise agreement, as well as any co-branding or host facility agreements, to understand the circumstances under which Carvel can terminate the agreement without an opportunity to cure any defaults.