Which section of the Carvel Franchise Agreement is amended, according to this FDD?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20. Section 22.11 (Additional Terms; Inconsistent Terms): The following additional terms amend the applicable Sections of the Agreement:
- A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:
Your Franchised Business shall operate as a Carvel® Hosted Express Shoppe, which shall sell a limited selection of Approved Products designated by us from within a facility operated by a third party (a "Hosted Express Shoppe"). The "Host Facility" shall mean the facility in which your Shoppe will be located.
- B. Section 2.1 (Initial Term) is deleted in its entirety and replaced with the following:
- 2.1 Initial Term. The initial term of this Agreement (the "Initial Term") will begin on the Effective Date and will end 5 years from the date that your Franchised Business opens for business (the "Opening Date"), unless this Agreement is terminated sooner as provided in other sections of this Agreement.
- C. Section 2.2 (Renewal Term) is amended to delete the first sentence in its entirety and replace it with the following sentence:
We may, in our reasonable discretion, grant you one additional 5-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term").
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, Section 22.11, titled "Additional Terms; Inconsistent Terms," of the Carvel Franchise Agreement is amended. This section outlines various modifications and additions to specific clauses within the agreement. These amendments cover aspects such as the grant of the franchise, the initial term, renewal terms, fees, and general obligations, among others.
For prospective Carvel franchisees, this means that the standard franchise agreement is subject to changes and additions as specified in Section 22.11. These changes can impact the way the franchise operates, the duration of the agreement, and the obligations of both the franchisee and franchisor. For example, amendments to Section 1.1 (Grant of Franchise) may specify the type of Carvel store, such as an Express Shoppe or an Ice Cream Truck, and any co-branding requirements with other franchises like Cinnabon.
Furthermore, amendments to sections like 2.1 (Initial Term) and 2.2 (Renewal Term) directly affect the length of the franchise agreement and the conditions for renewal. Changes to Section 3 (Fees) can introduce new fees or modify existing payment terms, such as the interest on past due amounts. Similarly, amendments to Section 18.1 (General Obligations) may add new requirements for the franchisee, such as the return of molds related to the Carvel system. Therefore, careful review of Section 22.11 is crucial to understanding the specific terms and conditions that apply to the franchise agreement.
In summary, Section 22.11 serves as a critical reference point for understanding the complete scope of the Carvel franchise agreement, as it details all the modifications and additions that deviate from the standard terms. Franchisees should pay close attention to this section to fully grasp their rights, responsibilities, and the overall operational framework of their Carvel franchise.