Under what agreement will GoTo Foods be providing support and services to Carvel franchisees?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
As noted in Item 1, we have entered into a management agreement with GoTo Foods for it to provide certain support and services to Carvel franchisees. GoTo Foods may delegate certain of these responsibilities to CL, the previous franchisor of Carvel franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Source: Item 21 — Financial Statements (FDD page 99)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, GoTo Foods provides support and services to Carvel franchisees under a management agreement with Carvel itself. Carvel has entered into this agreement with GoTo Foods to fulfill certain obligations Carvel has to its franchisees. While GoTo Foods may delegate some of these responsibilities to affiliates like CL, the previous franchisor, Carvel remains ultimately responsible for ensuring all support and services are provided as required by the Franchise Agreement.
This arrangement means that while franchisees interact with GoTo Foods for certain aspects of their business, Carvel is still the primary point of contact and is accountable for the overall quality and delivery of support. GoTo Foods also acts as Carvel's franchise sales agent. Carvel pays management fees to GoTo Foods for these services.
Prospective franchisees should understand that GoTo Foods is not a party to the Franchise Agreement itself and does not guarantee Carvel's obligations. However, GoTo Systems, the parent company of Carvel, does guarantee Carvel's performance under the Franchise Agreement. Franchisees should carefully review the financial statements of both GoTo Foods and GoTo Systems, included as Exhibit A in the FDD, to assess their financial stability and ability to provide ongoing support and fulfill their respective obligations.