Under what circumstances will a prospective franchisee NOT be considered new under the Carvel Franchisee/Industry Contact Lead Referral Program?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
A prospective franchisee will not be considered new if the prospective franchisee (including any of the individual owners if the prospective franchisee is an entity) has signed a franchise agreement with any other brands in the GoTo Foods Portfolio, and the referral fee will only be paid once in connection with the first franchise agreement signed with us. You must be in full compliance with all Franchise Agreements between you and us in order to receive a referral fee. We reserve the right to terminate, cancel, or modify such referral program at any time.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–24)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a prospective franchisee will not be considered new, and therefore ineligible for the Franchisee/Industry Contact Lead Referral Program, if they (including any of the individual owners if the prospective franchisee is an entity) have already signed a franchise agreement with any other brands in the GoTo Foods Portfolio. The referral fee will only be paid once in connection with the first franchise agreement signed with Carvel.
This policy is significant for existing franchisees of other GoTo Foods brands (such as Cinnabon, McAlister's Deli, or Moe's Southwest Grill) who might be considering adding a Carvel franchise. If they refer someone who then signs a Carvel franchise agreement, they would not be eligible for the referral fee if the prospective franchisee has a franchise agreement with another GoTo Foods brand. This encourages Carvel franchisees to seek out completely new prospects who are not already part of the GoTo Foods network.
To be eligible for the referral fee, the referring franchisee must also be in full compliance with all existing Franchise Agreements with Carvel. Carvel also retains the right to terminate, cancel, or modify the referral program at any time, which introduces an element of uncertainty for franchisees relying on this program as a source of income.