What section is added to the Carvel Franchise Agreement regarding leasehold improvements?

Based on the 2025 Carvel Franchise Disclosure Document, there is no mention of a section added to the Carvel Franchise Agreement regarding leasehold improvements. However, the document does mention insurance requirements, including coverage for improvements and betterments. Specifically, franchisees must maintain insurance coverage for "improvements and betterments" with covered causes of loss as "Special" or "All Risk" with coinsurance conditions not less than 80%. This suggests that franchisees are responsible for insuring any leasehold improvements they make to the Carvel location.

Since the FDD does not explicitly detail the responsibilities or requirements related to leasehold improvements beyond the insurance obligation, prospective franchisees should seek clarification from Carvel regarding the specific expectations for these improvements. This includes understanding who is responsible for the costs of improvements, what types of improvements are required or permitted, and what happens to those improvements at the end of the franchise term.

Understanding these aspects is crucial for budgeting and planning the initial setup and long-term operation of a Carvel franchise. It's important to determine whether Carvel has specific vendors or standards for leasehold improvements, as this can impact costs and the overall look and feel of the franchise location.