Under what circumstances will Carvel designate the Area of Protection after accepting the Proposed Location?

According to Carvel's 2025 Franchise Disclosure Document, the Area of Protection may be designated after Carvel accepts the Proposed Location as the Accepted Location. Specifically, for Streetside Locations, Carvel may designate the Area of Protection in its sole discretion after accepting the Proposed Location.

When Carvel designates the Area of Protection for the Franchised Business, the franchisee must sign standard documentation, including a general release, to formally document the Area of Protection. This documentation is a standard part of the process and legally binds the franchisee to the defined protected territory.

This means that the franchisee's exclusive rights within the Area of Protection are not defined until after the location is approved. The size and shape of the Area of Protection is determined by Carvel. The franchisee needs to understand the implications of this designation, as it directly impacts where they can operate without infringing on other franchisees or Carvel's rights. The franchisee should seek clarity on how Carvel determines the Area of Protection and what factors influence this decision.