Under what condition can Carvel suspend its obligation to sell goods to a franchisee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
If we or our Approved Suppliers are unable to supply you with the quantity and type of Goods you request, we will exert reasonable commercial efforts to allocate, or to cause our Approved Suppliers to allocate, the Goods available on an equitable basis among the Businesses that seek to purchase Goods.
You acknowledge that we, our affiliates, and our Approved Suppliers will not be liable if we, our affiliates, or our Approved Suppliers are unable to fulfill your requests.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel or its approved suppliers may be unable to supply a franchisee with the quantity and type of goods requested. In this case, Carvel will exert reasonable commercial efforts to allocate, or to cause their Approved Suppliers to allocate, the Goods available on an equitable basis among the Businesses that seek to purchase Goods.
The FDD clarifies that Carvel, its affiliates, and its Approved Suppliers will not be held liable if they are unable to fulfill a franchisee's requests for goods. This means that a Carvel franchisee may experience disruptions in their supply chain, which could impact their ability to meet customer demand and maintain consistent product offerings.
This clause protects Carvel from liability in situations where supply chain issues or other unforeseen circumstances prevent them from fulfilling orders. However, it also places the risk of supply shortages on the franchisee, who may need to find alternative solutions or accept potential losses in revenue. Prospective franchisees should consider this potential risk and inquire about Carvel's supply chain management practices and contingency plans.