Can Carvel use the Ad Fund for social media account administration and promotion?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Carvel can use the Ad Fund for social media account administration and promotion. Specifically, the Ad Fund can cover the costs of administering, preparing, and conducting national, local, or regional advertising, promotional, or brand-building programs. These programs can include social media account administration and promotion.
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. Carvel also reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate.
In Fiscal Year 2024, 16% of the Ad Fund was spent on media placement, which includes digital and social media placement. This demonstrates Carvel's existing allocation of the Ad Fund towards social media and digital platforms. While Carvel is not required to have an independent audit of the Ad Fund completed, they will provide franchisees with an annual summary of the expenditures of the Ad Fund upon reasonable request.