What was the total operating lease cost for Carvel in 2024?

According to Carvel's 2025 Franchise Disclosure Document, the total operating lease costs for the fiscal year 2024 were $19,106. This figure includes rental expenses related to leases for Company SBRs (store, bakery, and restaurant operations), leased properties subleased to franchisees, and leases for corporate offices. These costs are recorded under various expense categories, such as Company store, bakery and restaurant operations expenses, Franchise and other rental expense, and Selling, general, and administrative expenses.

In addition to the total operating lease costs, Carvel also incurred operating lease costs of $15,590 and variable lease costs of $3,516 during the same period. Variable lease costs primarily consist of common area maintenance, real estate taxes, and contingent rent based on a percentage of SBR sales. Understanding the breakdown between operating and variable lease costs can help a franchisee better anticipate and manage ongoing expenses.

Prospective Carvel franchisees should note that these lease costs reflect Carvel's corporate expenses and may not directly translate to the costs a franchisee will incur. However, reviewing these figures provides insight into the types of lease-related expenses Carvel faces, which can inform a franchisee's understanding of potential costs associated with leasing a Carvel location. It is important for potential franchisees to carefully review their own lease agreements and consult with financial advisors to fully understand their specific financial obligations.