What does the Carvel Sublease Administration Fee compensate?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| 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 designed to compensate Carvel for their administrative expenses related to subleasing a Shoppe to a franchisee. This fee is incurred if a franchisee subleases their Carvel location from the company.
The Sublease Administration Fee is Carvel's then-current fee, which is currently $200 per month. This fee is separate from other costs associated with the sublease, such as rent, insurance, public utility charges, late fees, and expenses for alterations and improvements to the property. The franchisee is responsible for covering these additional expenses as outlined in the sublease agreement.
Carvel retains the right to adjust the Sublease Administration Fee annually, but any increase is subject to an 'Allowed Adjustment,' which is not defined in this excerpt. It is important for prospective franchisees to understand all the costs associated with subleasing a location from Carvel, including the potential for fee increases, to accurately assess the financial implications of this arrangement.