Carvel
Carvel offers ice cream shops selling soft serve, hand-dipped ice cream, novelties, and cakes. Known for its ice cream shops since 1946, Carvel operates in the retail food service industry.
About Carvel
Carvel is an American ice cream franchise owned by GoTo Foods. Carvel is best known for its soft-serve ice cream and ice cream cakes, which feature a layer of distinctive "crunchies". It also sells a variety of novelty ice cream bars and ice cream sandwiches. Its slogan is "America's Freshest Ice Cream".
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Carvel franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Shoppe ranges from $38,800 to $99,800 for an Express Shoppe, from $73,075 to $222,260 for a Full Shoppe, and from $122,775 to $316,350 for an Ice Cream Truck. For a Cinnabon Co-Branded Shoppe or Swirl Shoppe, the total investment ranges from $443,810 to $1,099,500 [p.2].
What is the initial franchise fee?
The initial franchise fee varies based on the type of shoppe. For a Full Shoppe, it is $30,500; for an Express Shoppe or Hosted Express Shoppe, it is $10,500; for an Ice Cream Truck, it is $5,500; and for a CoBranded Shoppe, it includes both the fee to the franchisor ($30,500) and Cinnabon ($30,500), totaling $61,000. This fee is nonrefundable upon signing the agreement, even if the franchise is terminated before opening [p.47, p.28].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a recurring, non-refundable payment as specified in Schedule A [p.151]. There is also an obligation to conduct grand opening advertising if required by the company, with specific guidelines on obtaining approval and using approved content [p.166]. This isn't specified in the excerpts for advertising fees beyond the grand opening context.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the duration of the initial franchise agreement or the renewal process beyond mentioning that a provision exists for refusing to renew without fairly compensating the franchisee under certain conditions [p.6].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires giving advance notice and submitting requested information. The transferee must meet certain conditions, including satisfying qualifications and signing necessary documents. Additionally, you must pay a 10% transfer fee equal to the current initial franchise fee. The franchisor may withhold consent for any reasonable grounds or subject it to reasonable conditions [p.4, p.189].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts only detail termination rights for franchisees under state law [p.231, p.344], operating restrictions [p.4], and specific conditions related to location acceptance and development schedules [p.236]. There is no information given about grounds for franchisor termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific financial requirements such as net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive any protected or exclusive rights under the agreement [p.277]. This means that other franchisees can operate in the same general area as your location without violating the terms of the franchise agreement.
What training and ongoing support does the franchisor provide?
The franchisor provides on-site opening training and assistance for the first two Shoppes (including those owned by affiliates) at no additional cost. This includes one or more representatives providing onsite training for approximately seven days after obtaining the certificate of occupancy and health permit [p.73]. Beyond this, the franchisor does not provide any other specific training or ongoing support related to developing or implementing standards, policies, or procedures required under the Fast Food Act [p.331].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD excerpts do not include information about the number of franchised outlets that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor does provide some financial performance information, but it is limited and must be interpreted carefully. According to [p.91], the franchisor can provide actual or potential financial performance data if there is a reasonable basis for it and if this information is included in the Disclosure Document (FDD). However, as stated on [p.93], the franchisor does not make any additional representations about future financial performance beyond what is specified in Item 19 of the FDD, nor do they authorize their employees or representatives to make such claims either orally or in writing.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Approved Products that the franchisor has approved in writing. You must produce and sell all menu items, Trademarked Product Lines, and other products and services specified by the franchisor [p.83]. Additionally, you may have to purchase or lease certain equipment from an Approved Supplier, depending on the type of Shoppe you operate [p.48], and these items might be more expensive than those available elsewhere [p.4].