Does Carvel specify if franchisees have any input on how the Ad Fund is used?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
or they make in excess of the amounts then available in the Ad Fund will be considered an advance from us or our affiliates to the Ad Fund. We and/or our affiliates have the right to be reimbursed from the Ad Fund any amounts that are advanced to the Ad Fund.
We intend for the Ad Fund to be perpetual; however, after all of the Ad Fund contributions have been spent for the purposes described above, we may terminate the Ad Fund.
Advertising Council. We do not have an advertising council composed of franchisees that is involved in decision-making on advertising issues, but the Carvel Franchise Advisory Council ("FAC") provides us suggestions on advertising issues. The FAC is advisory only and does not have decision-making authority. At a minimum, a majority of the members of the FAC are franchisees in good standing who are nominated and elected by other franchisees, and the remainder of the members are franchisees or other representatives who may be appointed by us. We have the power to form, change, or dissolve the FAC or any other advertising or advisory council at any time.
Advertising Cooperatives. You are required to participate in any local, regional, or national cooperative advertising group consisting of other Shoppes (an "Advertising Cooperative") that we specify, when and if any of these groups are created. We currently have Advertising Cooperatives operating in Long Island, Ft.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees do not have direct decision-making authority regarding the Ad Fund. Carvel does not have an advertising council composed of franchisees that is involved in decision-making on advertising issues. However, the Carvel Franchise Advisory Council (FAC), which includes franchisee members, provides suggestions on advertising issues. The FAC is advisory only and does not have decision-making authority, and Carvel has the power to form, change, or dissolve the FAC or any other advertising or advisory council at any time.
Carvel retains sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. Carvel reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales it deems appropriate. The advertising and promotions that Carvel conducts are intended to maximize general public recognition and patronage of the System generally in the manner that Carvel determines to be most effective.
This means that while Carvel franchisees can offer suggestions through the Franchise Advisory Council, Carvel ultimately decides how the Ad Fund is spent. This is a fairly common practice in franchising, where the franchisor typically controls the advertising fund to ensure brand consistency and maximize the impact of advertising campaigns. However, the lack of direct control over the Ad Fund could be a concern for some franchisees, especially if they feel their local market needs are not being adequately addressed by the national advertising strategy.