Under what circumstances might Carvel require a franchisee to comply with the Grand Opening Obligation more than once?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee may be required to fulfill the Grand Opening Obligation more than once if they relocate their franchised business. The Grand Opening Obligation involves spending a specified amount on advertising to promote the opening of the Carvel franchise. This spending must occur within a period that starts 90 days before the opening date and ends 90 days after the opening date. The specific amount required for the Grand Opening Obligation is detailed in Schedule A of the Franchise Agreement. For other locations, the obligation is $6,000, for streetside locations, it is $15,000, and for the first four streetside locations in emerging markets, it is $25,000.

Carvel retains the discretion to either have the franchisee manage the grand opening advertising themselves or to require the franchisee to pay the Grand Opening Obligation amount to Carvel or its Ad Fund. If Carvel manages the advertising, it will designate or approve the advertising plan. The franchisee must obtain written approval for their grand opening advertising plan at least 30 days before the scheduled start date and must use only approved advertising content.

This obligation is separate from the franchisee's ongoing Advertising Contribution and any local advertising requirements. Carvel has the right to request documentation proving compliance with the Grand Opening Obligation. Failure to meet the advertising expenditure requirements allows Carvel to either require the franchisee to spend the remaining amount on local marketing or to spend the amount themselves and be reimbursed by the franchisee. Therefore, franchisees should be aware that relocating their Carvel business can trigger a repeat of the initial grand opening investment.