What are the specific criteria that a Carvel Single-Branded Streetside Franchise must meet to be considered an 'Eligible Streetside Franchise' and have its financial data included in Item 19?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
This Item 19 presents information about the financial performance during Fiscal Year 2024 (the fiscal year ended December 29, 2024) of single-branded Full Shoppes located in Streetside Locations ("Single-Branded Streetside Franchises") that (i) reported sales through our designated POS System and (ii) reported sales in all 52 weeks of Fiscal Year 2024 (the "Eligible Streetside Franchises").
This Item 19 does not include data for (i) Shoppes in Other Locations; (ii) Co-Branded Shoppes; or (iii) Express Shoppes, because the format of these Shoppes and related performance can vary substantially from our more typical Single-Branded Streetside Franchise format. In addition, this Item 19 does not include data for Single-Branded Streetside Franchises that do not use our designated POS System (which we have not required existing franchisees to implement), because we do not have access to Net Sales data for such Shoppes. This Item 19 also does not include data for Single-Branded Streetside Franchises that did not report sales in all 52 weeks of Fiscal Year 2024.
TABLE 1: AVERAGE NET SALES BY QUARTILES ELIGIBLE STREETSIDE FRANCHISES FOR FISCAL YEAR 2024
| Provisions | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| w. |
Source: Item 19 — Financial Performance Representations (FDD pages 91–93)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Item 19 includes financial performance data specifically for 'Eligible Streetside Franchises,' which are defined as single-branded Full Shoppes located in Streetside Locations. To be considered an 'Eligible Streetside Franchise' and have its data included in Item 19, a Carvel franchise must meet two key criteria. First, the franchise must have reported sales through Carvel's designated POS System. Second, the franchise must have reported sales in all 52 weeks of Fiscal Year 2024, which ended on December 29, 2024.
Carvel excludes several types of Shoppes from the 'Eligible Streetside Franchises' category. These exclusions include Shoppes in Other Locations, Co-Branded Shoppes, and Express Shoppes. Carvel states that the format and performance of these excluded Shoppes can vary significantly from the typical Single-Branded Streetside Franchise format. Additionally, Single-Branded Streetside Franchises that do not use Carvel's designated POS System are excluded because Carvel does not have access to their Net Sales data. Also excluded are Single-Branded Streetside Franchises that did not report sales for all 52 weeks of Fiscal Year 2024.
Of the 266 Single-Branded Streetside Franchises, only 104 (or 39.1%) met the criteria to be considered 'Eligible Streetside Franchises' and have their data included in Item 19. The remaining 162 franchises were excluded for various reasons: 154 did not use the designated POS system, four operated and used the POS system but did not report sales for all 52 weeks, and four opened during Fiscal Year 2024. Three Single-Branded Streetside Franchises closed permanently during the fiscal year, but these closures do not affect the eligibility criteria as they had been open for at least 12 months prior to closing. This information is important for prospective franchisees to understand the specific criteria Carvel uses to determine which franchise locations are included in their financial performance representations.