Under what circumstances might Carvel permit installment payments of the initial franchise fee?

According to Carvel's 2025 Franchise Disclosure Document, the company may, in certain rare cases, allow franchisees to pay the initial franchise fee in installments. The specific terms of these installment plans are negotiated individually between Carvel and the franchisee.

This flexibility could be beneficial for prospective franchisees who may not have the full initial franchise fee readily available. However, the FDD indicates that such arrangements are "rare," suggesting they are not commonly granted. The availability and terms of installment payments are subject to negotiation, meaning there's no guarantee a franchisee will be offered this option or that the terms will be favorable.

It is important for potential Carvel franchisees to inquire about the possibility of installment payments early in the franchise application process. Understanding the conditions under which Carvel might consider such an arrangement is crucial for financial planning. Franchisees should be prepared to discuss their financial situation and negotiate the terms of any potential installment plan.

While the FDD mentions the possibility of installment payments, it does not provide specific criteria or guidelines for eligibility. Therefore, prospective franchisees should directly engage with Carvel to understand the factors considered during the negotiation process and what documentation or financial information may be required to support their request.