How does the site selection area specified by Carvel
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Shoppe may only be operated at the Accepted Location. If we have not yet accepted a site for the Shoppe when we execute the Franchise Agreement, you must select a location that we accept in accordance with our site selection criteria within a site selection area that we specify. We will determine the site selection area on a case-by-case basis. You will have no exclusive or protected rights in your site selection area.
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, if a site has not been accepted when the Franchise Agreement is signed, the franchisee must select a location that meets Carvel's site selection criteria within a geographic area that Carvel specifies. Carvel determines this site selection area on a case-by-case basis. The franchisee will not have any exclusive or protected rights within this site selection area.
This means that while Carvel helps define the general area where a franchisee can look for a location, it does not grant any territorial exclusivity during the site selection process. A prospective Carvel franchisee should be aware that other franchisees or company-owned stores could also be looking at locations in the same general area. This lack of exclusivity continues even after a location is chosen, as Carvel does not grant exclusive territories, increasing the risk of competition from other Carvel outlets or channels.
For franchisees considering developing multiple Carvel Shoppes, the Multi-Unit Addendum outlines the site selection areas for each Shoppe and the development deadlines. These site selection areas are also determined on a case-by-case basis and are not exclusive. This implies that even with a multi-unit agreement, Carvel retains the flexibility to define site selection areas without guaranteeing exclusivity, which could impact the franchisee's expansion strategy and potential market share.