Under what condition related to a Co-Branded Agreement will Carvel terminate the agreement without an opportunity to cure?

According to the 2025 Carvel Franchise Disclosure Document, Carvel may terminate a Co-Branded Agreement without providing an opportunity to cure if the Co-Branded Agreement terminates or expires, or if the franchisee ceases to operate the Co-Branded Franchise at the accepted location for any reason. This means that if the agreement with the co-branding partner (in this case, Cinnabon) ends, Carvel can immediately terminate its agreement with the franchisee.

This condition is significant for prospective Carvel franchisees considering a co-branded location. It highlights the interdependence of the Carvel franchise and the co-branded franchise. The franchisee's ability to operate the Carvel franchise is directly tied to the status and continuation of the co-branded agreement. If the co-branded franchise agreement is terminated for any reason, the Carvel franchise agreement can also be terminated without an opportunity to rectify the situation.

This lack of a cure period means that the franchisee has no chance to correct the issue or negotiate a new agreement with the co-branding partner to maintain their Carvel franchise. The franchisee should carefully review the terms of the co-branded agreement and understand the conditions under which it could be terminated to assess the risk associated with this type of franchise. Prospective franchisees should seek clarification from Carvel regarding the specific implications and potential remedies in the event of a co-branded agreement termination.