Under the Carvel Franchisee/Industry Contact Lead Referral Program, what condition must a franchisee meet to be eligible to receive a referral fee?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with all Franchise Agreements between them and Carvel to be eligible to receive a referral fee under the Franchisee/Industry Contact Lead Referral Program. Carvel may pay a referral fee of $5,000 for a Full Shoppe, $1,000 for an Express Shoppe, and $500 for an Ice Cream Truck to the first franchisee or real estate broker that introduces a new prospective franchisee to Carvel.

Several conditions must be met for the referral fee to be paid. First, Carvel must approve the new prospect. Second, Carvel and the prospect must sign a Franchise Agreement within six months after the referral is made. Third, the prospective franchisee must pay Carvel the full Initial Franchise Fee. If these conditions are met, Carvel will pay the referral fee after the referred prospective franchisee's Franchise Agreement is fully signed and the full Initial Franchise Fee is paid.

The FDD specifies that a prospective franchisee will not be considered new if they (or any of the individual owners, if the prospective franchisee is an entity) have signed a franchise agreement with any other brands in the GoTo Foods Portfolio. The referral fee will only be paid once in connection with the first franchise agreement signed with Carvel. Carvel also reserves the right to terminate, cancel, or modify the referral program at any time, which introduces an element of uncertainty for franchisees relying on this program for additional income.