Under what conditions will Carvel charge the franchisee for inspection costs?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
estroy any adulterated, diluted, or contaminated Approved Products, eliminate their source, and remedy all unsanitary, unsafe, or otherwise hazardous conditions present. You may not resume operation of the Franchised Business until our laboratory analysis of your Approved Products or inspection of your Franchised Business, as applicable, demonstrates compliance with all applicable Laws and Standards. You must promptly implement any remedial measures we require to cure the default. If we conclude through any examination, analysis, and/or inspection that the Approved Products have been adulterated in any way or that your Franchised Business is not in compliance with applicable Laws, you shall, upon demand, reimburse us for all reasonable expenses connected with any such examination, analysis, or inspection under this Agreement (including reasonable product analysis fees).
- B. Additional Remedies. If: (i) we determine that a violation of Section 12.4.A. (Suspension of Operations) has occurred and that you have committed a similar violation within the one-year period before the date of the inspection or analysis; (ii) you fail or refuse to comply with any or all of the remedial measures we require; (iii) you fail to provide us with full cooperation in the course of any inspection or analysis we conduct; or (iv) we determine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothing in this Section 12.4 limits any of ou
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, Carvel may charge a franchisee for inspection or analysis fees under specific circumstances related to violations and cooperation during inspections.
Specifically, Carvel will charge the franchisee a $5,000 fee, in addition to travel, living, and legal expenses, if any of the following conditions are met: Carvel determines that a franchisee has violated the terms regarding the suspension of operations and has committed a similar violation within the past year; the franchisee fails or refuses to comply with required remedial measures; the franchisee does not fully cooperate with an inspection or analysis; or there is a repeat occurrence of a violation regarding suspension of operations during the term of the agreement.
These inspection fees are in addition to any other remedies Carvel may pursue under the franchise agreement, including termination. Carvel also retains the right to charge non-compliance fees, ranging from $25 to $500 per violation, for failure to adhere to standards or any provision of the agreement. These fees can be charged repeatedly and may vary based on the severity and frequency of the defaults, with potential adjustments each year.