Under what condition must a Carvel franchisee pay the Relocation Fee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| Relocation Fee | 10% of the then- current Initial Franchise Fee. | Before your relocation | If you relocate to a new site that we have accepted, you must pay the Relocation Fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended. | Before we sign relocation Franchise Agreement | If you relocate to a new site and we agree to extend the term of your Franchise Agreement (or enter into a new Franchise Agreement) to match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must pay a Relocation Fee if they move their Carvel shop to a new location that Carvel has approved. This fee is equal to 10% of the then-current Initial Franchise Fee and must be paid before the relocation takes place.
In addition to the Relocation Fee, Carvel also charges a Relocation Extension Fee under certain circumstances. If a franchisee relocates and Carvel agrees to extend the term of the Franchise Agreement (or enter into a new agreement) to match the term of the new lease, the franchisee must pay a Relocation Extension Fee. This fee is $1,500 per year that the term is extended and is due before Carvel signs the relocation Franchise Agreement.
These fees are important for prospective Carvel franchisees to consider, as relocation can be a significant expense. Franchisees should carefully evaluate the costs associated with relocating their business, including the Relocation Fee, the Relocation Extension Fee (if applicable), and any other expenses related to the move. It is also important to note that the Initial Franchise Fee can change, so the Relocation Fee could vary depending on when the relocation occurs.