What written agreement regarding upgrades must a Carvel franchisee make before the Renewal Term begins, so that the Franchised Business reflects Carvel's then-current Standards?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our reasonable discretion, grant you one additional 5-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term").
- D. Section 2.2.B.(i) (Conditions for Renewal Term) of the Agreement is deleted in its entirety and replaced with the following:
- (i) Agree in writing that, before the Renewal Term begins, you will make any upgrades required so that the Franchised Business will reflect our then-current Standards.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, to be granted a Renewal Term, a franchisee must agree in writing to make any necessary upgrades to ensure the Franchised Business reflects Carvel's then-current standards before the Renewal Term begins. This requirement replaces the previous condition that mandated significant capital expenditures to complete a Remodel within six months after the Renewal Term began.
This written agreement is a prerequisite for Carvel to approve a franchisee's application for a renewal term. The agreement ensures that the franchise location will be updated to meet the current brand standards, which may include changes to the store's design, equipment, or technology. This is intended to keep the Carvel brand consistent and appealing to customers.
For a prospective Carvel franchisee, this means being prepared to invest in upgrades to their location before the renewal term starts. The specific upgrades will be determined by Carvel to ensure compliance with their current standards. It is important for franchisees to factor in these potential costs when considering a renewal and to discuss with Carvel what specific upgrades might be required to avoid surprises closer to the renewal date.