Under what conditions will Carvel approve a franchisee's request to relocate their Franchised Business?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
as been identified and we are or will be the master lessee of such site. As part of such sublease, you will be required to pay us our then-current sublease administration fee, which may be increased in any calendar year by no more than the Allowed Adjustment. However, unless we have agreed otherwise in a separate written agreement, we shall have no obligation to enter into a sublease with you for any location. If we and you are parties to a sublease and we elect to assign the master lease to you, you must execute any and all documents required by the landlord to facilitate such assignment and cooperate with our efforts to obtain our release. Any real estate and improvement costs associated with the development of the Accepted Location will be your responsibility.
5.5 Relocation of the Franchised Business.
A. Relocation Request. You may relocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of
the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (i) the new location will be considered the "Accepted Location" as used in this Agreement;
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
- (iii) you must make or cause to be made to the former Accepted Location such changes in the signs and interior and exterior of the former Accepted Location so as to effectively distinguish such location from any other Business;
- (iv) we may charge you a relocation fee equal to 10% of the then-current Initial Franchise Fee to cover costs and expenses incurred by us or our affiliates in connection with any such acceptance, evaluation, and relocation of the Franchised Business;
- (v) we may require you to pay an agreed minimum royalty to us during the period in which the Franchised Business is not in operation (if any); and
- (vi) we may require you to sign our t
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee may request to relocate their franchised business, but Carvel is under no obligation to approve the relocation. Approval is at Carvel's sole discretion. To request a relocation, the franchisee must submit a site acceptance request for the new proposed location before closing the franchised business. A relocation includes changing the business's location within the same mall, facility, or building.
If Carvel approves the relocation, the franchisee must comply with several conditions. The new location will be considered the "Accepted Location" under the franchise agreement, and all site agreements must comply with the section regarding site acquisition. The franchisee must also alter the former location to distinguish it from any other Carvel business. Carvel may charge a relocation fee equal to 10% of the then-current Initial Franchise Fee to cover costs associated with the relocation.
Carvel may also require the franchisee to pay an agreed minimum royalty during any period when the business is not operating during the relocation. Additionally, Carvel may require the franchisee to sign the then-current form of franchise agreement, which may contain materially different terms, although the franchisee will not be required to pay another initial franchise fee. If the lease term for the new location extends beyond the original term, Carvel may extend the agreement to match the lease term, requiring a relocation extension fee of $1,500 multiplied by the number of years between the original expiration date and the new lease expiration.