Under what conditions can Carvel grant an additional 5-year renewal term?

According to the 2025 FDD, Carvel may grant a franchisee one additional 5-year renewal term, but the specific conditions depend on the type of Carvel franchise. For Carvel Express Shoppes, Hosted Express Shoppes, and Ice Cream Trucks, Carvel may grant a 5-year renewal term in its reasonable or sole discretion. A condition for renewal is that the franchisee must agree in writing to make any required upgrades to ensure the Franchised Business reflects Carvel's then-current standards before the Renewal Term begins.

For a standard Carvel franchise, to obtain a renewal term, the franchisee must have substantially and timely complied with all provisions of the Franchise Agreement and other agreements with Carvel, its affiliates, or the landlord throughout the initial term. There must be no existing defaults as of the expiration of the initial term. The franchisee must request the renewal in writing no earlier than 12 months and no later than six months before the initial term expires. Carvel will then provide an Application for Renewal Term, which the franchisee must complete and return within 10 days. Carvel will evaluate the application under standards similar to those for new franchisees.

If Carvel approves the renewal application for a standard franchise, the franchisee must execute Carvel’s then-current form of Franchise Agreement, which may include terms that differ from the original agreement. The franchisee must also pay a renewal fee equal to 20% of Carvel’s then-current initial franchise fee. Additionally, the franchisee must modernize or remodel the premises to meet Carvel’s then-current image and standards, and provide evidence of the required insurance coverage.