What were the total operating lease costs for Carvel in 2023?

According to Carvel's 2025 Franchise Disclosure Document, the total operating lease costs for the fiscal year ended in 2023 were $20,964. This figure encompasses rental expenses related to leases for Company Stores, Bakeries, and Restaurants (SBRs), leased properties subleased to franchisees, and leases for corporate offices. These costs are recorded under various expense categories, including 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 $17,486 and variable lease costs of $3,478 during the same fiscal year. 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, understanding the components of these costs, such as rent, maintenance, and taxes, can provide a useful framework for evaluating potential locations and negotiating lease terms. It is important for potential franchisees to carefully review their individual lease agreements and consult with financial advisors to fully understand their specific financial obligations.