Can Carvel waive any of the conditions for a Control Transfer?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
For a proposed Control Transfer, in addition to any other conditions that we may specify and without limiting in any way our sole and absolute discretion to grant or withhold consent for a proposed Control Transfer, at a minimum, the following conditions must be satisfied (unless waived by us):
- A.
You notify us in writing at least 90 days prior to any proposed Control Transfer and provide all requested information at least 60 days prior to any proposed Control Transfer.
- B.
All sums you owe us and our affiliates are paid.
- C.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, Carvel has the ability to waive certain conditions for a Control Transfer. Specifically, for a Control Transfer, several conditions must be met unless Carvel waives them.
These conditions include notifying Carvel in writing at least 90 days prior to the proposed Control Transfer and providing all requested information at least 60 days prior. Additionally, all sums owed to Carvel and its affiliates must be paid. The franchisee must not be in default under any agreement with Carvel or its affiliates. The transferee must also complete Carvel's Management Training Program and meet Carvel's requirements for new franchisees, including English proficiency.
Carvel retains sole and absolute discretion to grant or withhold consent for a proposed Control Transfer, and the conditions outlined are in addition to any other conditions Carvel may specify. However, the explicit statement that these conditions must be satisfied 'unless waived by us' provides Carvel with the flexibility to waive certain requirements at its discretion. This waiver provision could be beneficial for a franchisee who may not be able to meet all the standard requirements for a Control Transfer, but it ultimately depends on Carvel's willingness to exercise this option.