Under what conditions must a Carvel franchisee obtain approval of a lease and pay the Lease Renewal/Extension Review Fee?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1, 4 | Amount | Date Due | Remarks |
|---|---|---|---|
| We may require you to pay the training fee again for the rescheduled training. | |||
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. | As incurred | We may require you to license an electronic learning management system (the “Learning Management System”) to participate in certain required training programs and access the Manuals. We may require you to pay this fee to us, an affiliate, or a third-party vendor. We may change this fee in any year by no more than the Allowed Adjustment. |
| Sublease Administration Fee | Our then-current fee. Currently, $200 per month. | As incurred | If you sublease a Shoppe from us, you must pay us this fee to compensate us for our administrative expenses. The fee is in addition to any fees under the sublease such as rent, insurance, public utility charges, late fees, alterations and improvements. We may change this fee in any year by no more than the Allowed Adjustment. |
| Lease Renewal/ Extension Review Fee | Our then-current fee. Currently, ranges from $500 for a lease term of two years or less to $2,000 for a term of five years or more. | As incurred | If you renew a lease or a lease is extended by the landlord for a period of 12 months or more, you must obtain our approval of the lease and, in our sole discretion, pay this fee, which we may change in any year by no more than the Allowed Adjustment. Our review of the lease will be limited to determining whether it complies with the Franchise Agreement. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — OTHER FEES (FDD pages 31–42)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee must obtain Carvel's approval of their lease and potentially pay a Lease Renewal/Extension Review Fee under specific circumstances. This requirement is triggered when a franchisee renews their lease or if the lease is extended by the landlord for a period of 12 months or more. The actual payment of the fee is subject to Carvel's discretion.
The Lease Renewal/Extension Review Fee varies depending on the length of the lease term. The fee currently ranges from $500 for a lease term of two years or less, up to $2,000 for a term of five years or more. This fee is subject to change by Carvel each year, but any increase will not exceed the Allowed Adjustment. Carvel's review of the lease is limited to ensuring that it complies with the Franchise Agreement.
This fee and approval process are in place to ensure that the lease terms are acceptable to Carvel and align with the requirements of the franchise agreement. For a prospective franchisee, this means that lease negotiations and renewals must factor in Carvel's approval process and the potential cost of the Lease Renewal/Extension Review Fee. Failing to obtain approval or pay the fee could result in a breach of the franchise agreement.