Under what circumstances related to death or disability must a Carvel franchisee transfer all rights and interests, and is a transfer fee due?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Agreement | Summary |
|---|---|---|
| g. You and your guarantors and owners must sign a general release and remain liable for pre-Transfer obligations | ||
| HES: 20.Q. | If you operate a Hosted Express Shoppe, you must also transfer the Host Facility with your transfer under the Franchise Agreement. | |
| n. Our right of first | FA: 16.8 | We can match any offer for your Shoppe or |
| refusal to acquire your | substantially all interest in your entity. | |
| business | HES: 20.Q. | Above not applicable for a Hosted Express Shoppe. |
| o. Our option to | FA: 18.4 | We may purchase your Goods related to the Shoppe |
| purchase your business | at the fair market value (exclusive of goodwill) and may purchase your Accepted Location if you own it or your interest in any lease. | |
| HES: 20.V. | Above not applicable for a Hosted Express Shoppe. | |
| p. Your death or | FA: 16.6 | Upon 180 days from your death or permanent |
| disability | incapacity you must transfer all rights and interests to buyer that complies with Transfer provisions, except no Transfer Fee will be due. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 84–91)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must transfer all rights and interests within 180 days of their death or permanent incapacity. This requirement ensures the continued operation of the Carvel franchise. The transfer must be to a buyer who complies with Carvel's standard transfer provisions.
However, in the event of death or permanent incapacity, Carvel waives the transfer fee that would normally be due. This waiver provides some financial relief to the franchisee's estate or the franchisee themselves during a difficult time.
This provision is fairly standard in franchising, as franchisors typically want to ensure business continuity while also providing some flexibility and support to franchisees facing hardship. Prospective Carvel franchisees should understand these conditions and consider them when planning for unforeseen circumstances.