Under what conditions can Carvel terminate the MU Addendum or any of the remaining MUA Franchise Agreements?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
If you (i) fail to comply with any of the deadlines set forth in the Development Schedule and we have not granted an extension of such deadline(s) or (ii) any other agreement between you and us or our affiliates is terminated, we may, in our sole discretion, terminate this Addendum and/or any or all of the remaining MUA Franchise Agreements for which you have not yet opened a MUA Business. For the avoidance of doubt, if you fail to comply with any of the deadlines set forth in the Development Schedule, such default shall not be grounds for us to terminate any MUA Franchise Agreements that are in effect for Franchised Businesses that are already open and operating at the time of such default.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel can terminate the Multi-Unit Addendum (MU Addendum) and any remaining MUA Franchise Agreements under specific conditions. If a franchisee fails to meet the deadlines outlined in the Development Schedule without an approved extension, Carvel has the right to terminate the MU Addendum and related MUA Franchise Agreements for franchised businesses that have not yet opened.
Additionally, Carvel may terminate the MU Addendum and/or any or all of the remaining MUA Franchise Agreements if (i) the franchisee fails to comply with any of the deadlines set forth in the Development Schedule and Carvel has not granted an extension, or (ii) any other agreement between the franchisee and Carvel or its affiliates is terminated. However, a failure to comply with deadlines in the Development Schedule does not allow Carvel to terminate MUA Franchise Agreements for franchised businesses that are already open and operating.
This means that prospective Carvel franchisees entering into a Multi-Unit Addendum must adhere strictly to the Development Schedule to avoid potential termination of agreements for unopened locations. It also highlights the importance of maintaining good standing in all agreements with Carvel and its affiliates, as a breach in one agreement could trigger termination of the MU Addendum and related franchise agreements. Franchisees should carefully review the Development Schedule and all related agreements to understand their obligations and the potential consequences of non-compliance.