Under what conditions can a Carvel franchisee NOT terminate the Franchise Agreement?

According to Carvel's 2025 Franchise Disclosure Document, a Carvel franchisee's ability to terminate the Franchise Agreement is generally governed by applicable law. Specifically, the FDD states that a franchisee may terminate the Franchise Agreement on any grounds available by law.

However, the FDD includes addenda for certain states like Maryland and Minnesota that modify the standard agreement to comply with local franchise laws. For example, in Maryland, the general release required as a condition of renewal, sale, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Similarly, the Minnesota addendum ensures that Carvel complies with Minnesota law regarding termination notices and transfer consent, and that the franchisee retains all rights provided under Minnesota statutes.

In essence, while the Franchise Agreement itself outlines termination conditions, these are subject to the overriding provisions of state laws designed to protect franchisees. Therefore, a Carvel franchisee's ability to terminate might be restricted only by the grounds available under the relevant state and federal laws, and any specific stipulations within those laws, rather than by an outright prohibition in the Franchise Agreement itself.