Under what condition can a Carvel franchisee use a general contractor that is not designated or pre-approved by Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. General Contractor. You must engage, at your expense, a licensed and insured general contractor ("General Contractor") that we have designated or pre-approved to complete the build-out of your Franchised Business, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose. Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must typically engage a general contractor that Carvel has designated or pre-approved to complete the build-out of their franchised business. However, Carvel may, in its sole discretion, agree in writing to accept a general contractor proposed by the franchisee.
This means that while Carvel prefers franchisees to use their designated or pre-approved contractors, a franchisee can request to use a contractor of their choosing. However, the final decision rests solely with Carvel, and their approval must be in writing. This provides Carvel with control over the contractors used in building out their franchise locations, likely to ensure that construction meets their standards and specifications.
It is important to note that Carvel's designation, pre-approval, or acceptance of a general contractor does not constitute an endorsement or render Carvel liable for the contractor's performance. Therefore, even if Carvel approves a contractor, the franchisee is still responsible for ensuring the contractor performs adequately. A prospective franchisee should carefully vet any contractor, even if they are on Carvel's pre-approved list, and understand that Carvel is not responsible for the contractor's work.