Under what public health or safety circumstances can Carvel terminate the franchise agreement?

According to the 2025 Carvel Franchise Disclosure Document, Carvel can terminate the franchise agreement if the franchisee operates the business in a manner that poses a threat or danger to public health or safety. This includes situations where a public official requires the franchisee to close the business due to violations of laws relating to public health or safety. In such cases, Carvel has the right to terminate the agreement.

If Carvel determines that the franchisee's operation poses a risk to public health or safety, they can terminate the agreement. This clause is designed to protect the brand's reputation and ensure that all Carvel locations adhere to health and safety standards. The FDD specifies that Carvel must use reasonable discretion when determining if a threat exists.

Carvel also has the right to terminate the agreement if the franchisee fails to cure certain defaults after receiving notice. For instance, if the franchisee fails to grant immediate access to the business for inspections or fails to provide requested materials or cooperation during inspections, Carvel can terminate the agreement if the default is not cured within 24 hours of the notice. Similarly, if the franchisee fails to cure a default related to the dilution or adulteration of approved products or misrepresents, substitutes, or palms off unapproved products, Carvel can terminate the agreement if the default is not cured within 24 hours of the notice.