Under what circumstances is a Carvel franchisee required to obtain approval of a lease?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. | As incurred | We may charge you this fee if you fail to provide us with a signed copy of any lease or a modification, amendment, or renewal of a lease within 15 days after its execution. The fee is payable for each month or partial month after the deadline, until you provide the documentation. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must obtain Carvel's approval of a lease under specific circumstances related to lease renewals or extensions. If a franchisee renews their lease, or if the landlord extends the lease for a period of 12 months or more, the franchisee is required to obtain Carvel's approval. Additionally, Carvel has the sole discretion to require the franchisee to pay a Lease Renewal/Extension Review Fee. This fee currently ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more.
Carvel's review of the lease is limited to determining whether the lease complies with the Franchise Agreement. This means Carvel is primarily concerned with ensuring the lease terms do not conflict with the franchisee's obligations under the Franchise Agreement. The Lease Renewal/Extension Review Fee can be changed by Carvel in any year, but the change cannot exceed the Allowed Adjustment.
Furthermore, Carvel may charge a Lease Documentation Late Fee of $500 per month (or partial month) if the franchisee fails to provide a signed copy of any lease, modification, amendment, or renewal of a lease within 15 days after its execution. This fee is payable for each month or partial month after the deadline until the franchisee provides the required documentation. This highlights the importance of franchisees promptly providing all lease-related documents to Carvel to avoid incurring additional fees.