Under what circumstances might a Carvel franchisee be required to comply with the Grand Opening Obligation more than once?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee may be required to fulfill the Grand Opening Obligation more than once under specific circumstances. The standard Grand Opening Obligation requires the franchisee to spend a specified amount on advertising to promote the opening of their Carvel franchise. This spending must occur within a period that starts 90 days before the opening date and ends 90 days after the opening date.

However, Carvel retains the right to require a franchisee to repeat the Grand Opening Obligation if the franchisee relocates their franchised business. This means that if a Carvel franchisee moves their store to a new location after the initial opening, Carvel can mandate that they conduct another grand opening advertising campaign, incurring the associated costs again.

This condition is important for prospective franchisees to consider, as relocation might seem like a viable option for various reasons, such as changing demographics or lease issues. However, the additional financial burden of a second Grand Opening Obligation could significantly impact the profitability and feasibility of such a move. Franchisees should carefully evaluate the potential costs and benefits before deciding to relocate their Carvel franchise.