Can Carvel use the Ad Fund for Digital Marketing?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
iate will administer the Ad Fund. We have sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. We reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales we deem appropriate.
We may use the Ad Fund to meet the costs of administering, preparing, and conducting national, local, or regional advertising, promotional, or brand building programs of any kind, including the cost of (i) preparing and conducting television, radio, magazine, newspaper, and digital advertising campaigns and other public relations activities (including, but not limited to, for purposes of brand reputation management), (ii) employing public relations firms and advertising agencies to assist in these activities, and (iii) conducting other activities that are directly or indirectly designed to promote the System, its franchisees, and/or increase System sales, such as limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials (e.g., cups), up-sell programs, guest response programs, manager/employee recognition programs, quality assurance and food safety programs, mystery shop and shopper programs, brand websites and ordering platforms, brand applications, social media account administration and promotion, and in-shoppe equipment and technologies related to such marketing programs. We may use the Ad Fund to compensate us for the reasonable administrative costs and overhead we incur in activities related to advertising and promotional programs, including new product development; market research; preparing advertising and promotional materials; Digital Marketing (as defined below); working with public relations firms, advertising agencies, advertising placement services, and creative talent; reimbursing franchisee advisory council meeting expenses;
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–74)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the Ad Fund can be used for digital marketing. Carvel may use the Ad Fund to cover the costs of administering and conducting national, local, or regional advertising, promotional, or brand-building programs, including digital advertising campaigns. This encompasses various activities such as television, radio, magazine, newspaper, and digital advertising, as well as public relations efforts for brand reputation management.
Carvel can also use the Ad Fund to compensate themselves for reasonable administrative costs and overhead related to advertising and promotional programs, including digital marketing. This includes working with public relations firms, advertising agencies, and creative talent, as well as developing and maintaining internet sites, applications, and other technologies related to marketing programs.
In fiscal year 2024, Carvel allocated 16% of the Ad Fund to media placement, which includes digital and social media placement. This demonstrates a commitment to utilizing the Ad Fund for digital marketing initiatives. Carvel has sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising.