Under what circumstances would Schedule E, the Multi-Unit Addendum, be included in the Carvel Franchise Agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign multiple Franchise Agreements at the same time, you will also sign a Multi-Unit Addendum that outlines the site selection areas for each Shoppe to be developed under the Franchise Agreements and the development deadlines for such Shoppes. The site selection areas for each Shoppe will be determined on a case-by-case basis. Your site selection areas will not be exclusive. After you and we accept a site for the Accepted Location for each Shoppe, you will sign an addendum to the Franchise Agreement that modifies the Accepted Location to reflect the site for such Shoppe.
Except as provided in any Multi-Unit Addendum, you will not have any options, rights of first refusal, or similar rights to acquire additional franchises or establish additional Shoppes, even within the building or facility in which your Shoppe is located.
Source: Item 22 — Contracts (FDD pages 99–100)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Schedule E, the Multi-Unit Addendum, is included in the Carvel Franchise Agreement when a franchisee signs multiple franchise agreements simultaneously. This addendum outlines the site selection areas for each Carvel Shoppe to be developed under these agreements and specifies the development deadlines for each location. The specific site selection areas are determined on a case-by-case basis and are not exclusive to the franchisee.
After Carvel and the franchisee agree on a site for each Shoppe, an addendum is added to the Franchise Agreement. This addendum modifies the Accepted Location to reflect the specific site chosen for that Carvel Shoppe. This process ensures that each location has a defined area and that both parties are in agreement regarding the development plans.
Except as explicitly stated in the Multi-Unit Addendum, franchisees do not have any options, rights of first refusal, or similar rights to acquire additional franchises or establish additional Carvel Shoppes, even within the same building or facility as their existing location. This clarifies that the Multi-Unit Addendum is the primary mechanism for franchisees to secure rights to develop multiple locations, and without it, expansion opportunities are limited.