How does the training provided to Carvel franchisees as described in Item 11 relate to the Learning Management System License Fee mentioned in Item 6?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ot pay us or our affiliates any other fees or payments for services or goods before your Shoppe opens. The initial fees are not refundable.
ITEM 6 OTHER FEES
| 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. |
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Learning Management System (LMS) may be used to deliver training programs and access the operations manuals. Item 6 details the Learning Management System License Fee, which is the then-current fee of $170 per year. Carvel may require franchisees to license an electronic learning management system to participate in certain required training programs and access the manuals. This fee is paid as incurred and may be subject to change, but Carvel will not increase the fee by more than the Allowed Adjustment in any given year. The fee may be payable to Carvel, an affiliate, or a third-party vendor.
Item 11 describes the training programs Carvel provides to franchisees. The manuals, which contain mandatory and suggested specifications, standards, and operating procedures, are currently provided electronically at no cost. However, Carvel states that in the future, these manuals, or portions of them, may be provided electronically through the Learning Management System. If this happens, Carvel may require franchisees to pay a license fee to use the system.
In summary, while the training manuals are currently free, Carvel retains the right to deliver them through a Learning Management System in the future, which would trigger the Learning Management System License Fee. This means that franchisees may need to budget for this recurring annual fee to access essential training materials and updates to operating procedures.