Under what circumstances will the Carvel Support Services Agreement terminate immediately with respect to the Franchised Business?

According to Carvel's 2025 Franchise Disclosure Document, the Support Services Agreement will terminate immediately with respect to the Franchised Business when the Franchise Agreement for that business terminates or expires. This means that the Support Services Agreement, which covers help desk and related support for the POS system, is directly tied to the underlying Franchise Agreement. If the Franchise Agreement ends, so does the Support Services Agreement.

This immediate termination has significant implications for a Carvel franchisee. The franchisee will lose access to the POS system support services immediately upon termination or expiration of the Franchise Agreement. Therefore, it is crucial for franchisees to maintain their franchise agreement in good standing to ensure continued support for their POS system.

Additionally, if Carvel ceases to offer or provide Support Services to franchisees in the System on or before the Service Start Date, the Support Services Agreement will automatically terminate. This could occur if Carvel decides to discontinue the support program or if the affiliate providing the support goes out of business. This automatic termination protects both parties, as Carvel is not obligated to provide services it no longer offers, and the franchisee is not obligated to pay for services that are not being provided.