Are there Approved Suppliers for the POS System that Carvel franchisees must use?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
equipment to prepare and store new menu items. You may not install on or about your Shoppe any merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment or utensils unless they have been approved by us in writing. You must purchase these items only from an Approved Supplier unless we specify otherwise.
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Shoppe, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. Full Shoppes and Express Shoppes will be required to use this designated POS System; Hosted Express Shoppes and Ice Cream Trucks may use another, approved POS System with prior approval from us. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 52–56)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to purchase most components of the computer system, including the POS system, from approved suppliers. Carvel currently has approved suppliers for the POS system and certain software, such as the Learning Management System. Franchisees are also required to use designated approved suppliers for point-to-point encryption (P2PE) solutions, which include hardware and software used with the POS system for secure payment processing.
Full Shoppes and Express Shoppes are mandated to use the designated POS system. However, Hosted Express Shoppes and Ice Cream Trucks have the option to use another approved POS system, but this requires prior approval from Carvel. Carvel may collect upfront and ongoing fees related to the POS system from franchisees and pay the vendor on their behalf. Additionally, Carvel may require franchisees to maintain support service contracts from Carvel, its affiliates, or designated approved suppliers.
During the fiscal year ending December 29, 2024, Carvel received $85,890 from franchisees for support fees associated with the POS system. This indicates that Carvel plays an active role in managing and supporting the POS systems used by its franchisees, ensuring compliance and standardization across the brand. Prospective franchisees should inquire about the specific approved suppliers, the costs associated with the POS system, and the terms of any required support service contracts to fully understand the financial and operational implications.