Under what circumstances will Carvel NOT require a franchisee to participate in an Advertising Cooperative?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee will not be required to participate in an Advertising Cooperative if Carvel collects the entire Local Marketing Obligation from the franchisee. This means that instead of the franchisee spending a minimum amount on local advertising, providing a local marketing plan, or participating in the Advertising Cooperative, Carvel takes on the responsibility of managing those marketing efforts.

This arrangement gives Carvel the discretion to use the Local Marketing Obligation funds to contribute to the Ad Fund, spend on national, regional, or local advertising campaigns, contribute to the Advertising Cooperative in the franchisee's market, or spend on local advertising in the franchisee's market. Carvel is not obligated to ensure that the funds spent are proportionate or equivalent to the franchisee's contributions or that the franchised business will benefit directly or pro rata from the advertising.

For a prospective Carvel franchisee, this means that while they may not have direct control over local advertising and marketing strategies, they are also relieved of the administrative burden of managing those activities. However, it's important to note that Carvel has the sole discretion on how these funds are spent and there is no guarantee of direct benefit to the franchisee's specific location.