Under what circumstances might Carvel franchisees request to relocate their Shoppe?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You may request to relocate your Shoppe if you lose the right to operate at the Accepted Location or provide other business justifications for the relocation. You may not relocate your Shoppe unless we approve the relocation in advance in writing. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests, except that you must comply with our site approval process, must be in compliance with all terms of the Franchise Agreement, and must have the funds available to relocate the Shoppe and to construct a new Shoppe according to our then-current design standards. We are under no obligation to approve a proposed relocation of the Shoppe. If you lose the right to occupy the premises where you are operating your Shoppe, we may, in our sole discretion, terminate your Franchise Agreement.
Source: Item 12 — Territory (FDD pages 74–79)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee may request to relocate their Shoppe under specific circumstances. A Carvel franchisee can request relocation if they lose the right to operate at their current, accepted location. Additionally, franchisees can request relocation if they have other business justifications that support the move. However, any relocation is contingent upon Carvel's prior written approval.
It's important to note that Carvel has not established a specific set of conditions or criteria for evaluating or approving relocation requests. However, the franchisee must comply with Carvel's site approval process, be in full compliance with all terms of the Franchise Agreement, and demonstrate that they have sufficient funds available to cover the costs of relocating the Shoppe and constructing a new Shoppe that meets Carvel's current design standards. Carvel is under no obligation to approve a proposed relocation.
If a Carvel franchisee loses the right to occupy their current premises, Carvel retains the sole discretion to terminate the Franchise Agreement. If Carvel approves a relocation request, the Site Agreement for the new location must comply with the Franchise Agreement. The franchisee must also de-identify the former site. Carvel may charge a Relocation Fee, require the franchisee to pay an agreed minimum royalty during the period the Shoppe is not in operation, and require the franchisee to sign the then-current Franchise Agreement or an amendment to their existing Franchise Agreement. The new Franchise Agreement may have materially different terms than the existing one.
Furthermore, if the lease term for the new location extends beyond the term of the existing Franchise Agreement, Carvel may extend the term of the existing or new Franchise Agreement to match the lease term, but the franchisee will be required to pay a Relocation Extension Fee. This ensures that Carvel maintains control over the location and operation of its franchises, while also providing franchisees with a potential option to continue operating under certain conditions.