What written agreement is required from a Carvel franchisee before the Renewal Term begins regarding upgrades to reflect 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 the 2025 Carvel FDD, 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. This agreement must be in place before the Renewal Term begins.
This requirement ensures that all Carvel locations maintain a consistent brand image and meet the current expectations of customers. By mandating upgrades, Carvel aims to keep its franchises modern and appealing, which can positively impact customer satisfaction and overall business performance.
In addition to agreeing to the upgrades, the franchisee must also sign Carvel's then-current form of franchise agreement, referred to as the "Renewal Agreement," within 30 days of receiving it. The franchisee must also pay a renewal fee equal to 20% of the then-current Initial Franchise Fee. The FDD also states that the Renewal Agreement may contain terms that differ materially from the original agreement.