What written agreement is required from a Carvel franchisee regarding upgrades before the renewal term begins?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Section 2.2.B.(i) (Conditions for Renewal Term) 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 upgrades required so that the franchised business will reflect Carvel's then-current standards before the renewal term begins. This agreement is a condition for the renewal term.
Additionally, the franchisee must sign and return Carvel's then-current form of franchise agreement, known as the "Renewal Agreement," within 30 days after it is delivered. They must also pay a renewal fee equal to 20% of the then-current Initial Franchise Fee. The Renewal Agreement may contain terms that differ materially from the original agreement.
Finally, the franchisee and their owners must sign a general release, releasing Carvel and its affiliates from all claims as of the date of the Renewal Agreement. This release covers Carvel's parents, subsidiaries, directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors, heirs, and assigns.