Under what circumstances will Carvel specify a new Area of Protection for a Carvel franchise?

According to Carvel's 2025 Franchise Disclosure Document, a new Area of Protection will be specified if a franchisee relocates their Franchised Business. When Carvel designates the Area of Protection for the Franchised Business, the franchisee must sign standard documentation, including a general release, to document the Area of Protection.

For Streetside Locations, Carvel grants franchisees a protected territory with limited exclusive rights, referred to as an "Area of Protection." This area can be defined as either a specified mile or block radius from the Accepted Location. Carvel retains the discretion to designate the Area of Protection after accepting the Proposed Location.

However, Carvel also reserves certain rights, including the right to establish or license franchises and/or company-owned businesses offering similar products or services outside the Area of Protection, in Other Locations inside or outside the Area of Protection, or in businesses other than Swirl Businesses inside or outside the Area of Protection. Carvel may also modify the Area of Protection if the franchisee defaults on the agreement and Carvel chooses not to terminate the agreement, potentially reducing or eliminating the Area of Protection.