When transferring a Carvel franchise that is co-branded, what additional transfer requirements must be met?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you may not Transfer any interest in the Agreement or in the Franchised Business unless you simultaneously transfer to the same third-party transferee the same interest in your Co-Branded Franchisor or in your Co-Branded Franchise, as the case may be. You acknowledge that you will have to satisfy the transfer procedures for both us (as set forth in this Agreement) and the Co-Branded Franchisor (as set forth in your Co-Branded Agreement), including the right to approve the Transfer and the proposed transferees and payment of any transfer fees due under each agreement.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, if you have a co-branded franchise, you must simultaneously transfer your interest in both the Carvel franchise and the co-branded franchise to the same third-party. This means you cannot sell just the Carvel portion of the business; both franchises must be transferred together.
In addition to Carvel's standard transfer requirements, you must also satisfy the transfer procedures outlined in the co-branding franchise agreement. This includes obtaining approval from both Carvel and the co-branded franchisor for the transfer and the proposed transferees. You will also be responsible for paying any transfer fees due under both the Carvel agreement and the co-branding agreement.
This requirement ensures that the co-branded business continues to operate as intended with a single, qualified operator approved by both franchise systems. Prospective franchisees should carefully review both franchise agreements to understand all transfer requirements and associated costs.