Does Carvel specify how often they will provide notice of an Advertising Contribution increase?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
d to conduct any advertising or spend any amount on advertising in your market. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such forms and media as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared.
Ad Fund. We will allocate your Advertising Contributions to a fund for the advertising and promotion of the Shoppes, the Proprietary Marks, and the System (the "Ad Fund"). Currently, you must make Advertising Contributions to the Ad Fund in the amount of 3% of Net Sales, except if you operate a Cinnabon Co-Branded Shoppe in Other Locations (excluding Swirl Shoppes) the contribut
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, Carvel may increase the Advertising Contribution by providing notice to franchisees. The document does not specify a particular timeframe for this notice, but it does state that the combined Advertising Contribution and Local Marketing Obligation will not exceed 5% of Net Sales.
This means that Carvel has the discretion to raise the Advertising Contribution, which is currently 3% of Net Sales (or 2.5% for Cinnabon Co-Branded Shoppes in Other Locations, excluding Swirl Shoppes, and 0% for Hosted Express Shoppes), as long as franchisees are notified. However, the total of the Advertising Contribution and the Local Marketing Obligation cannot exceed 5% of Net Sales.
A prospective Carvel franchisee should inquire about how much advance notice Carvel typically provides before increasing the Advertising Contribution. Understanding the historical frequency and magnitude of these increases will help a franchisee better forecast their marketing expenses and overall profitability.