Is the Carvel Sublease Administration Fee in addition to other fees under the sublease?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| We may require you to pay the training fee again for the rescheduled training. | |||
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. | As incurred | We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment. |
| Sublease Administration Fee | Our then-current fee. Currently, $200 per month. | As incurred | If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Sublease Administration Fee is in addition to other fees under the sublease. If a franchisee subleases a Shoppe from Carvel, they must pay Carvel a Sublease Administration Fee to compensate them for their administrative expenses. Currently, this fee is $200 per month.
This fee is in addition to any other fees that the franchisee is required to pay under the sublease agreement itself. These additional fees may include rent, insurance, public utility charges, late fees, and costs associated with alterations and improvements to the property. Carvel may change the Sublease Administration Fee each year, but the increase will not be more than the Allowed Adjustment.
Prospective franchisees should carefully consider these additional costs when evaluating the financial feasibility of subleasing a Carvel Shoppe. It's important to factor in all potential expenses, including the Sublease Administration Fee and any other fees outlined in the sublease agreement, to accurately assess the overall cost of operating the franchise.