Carvel
Incorporated: 1946
Franchising Since: 1947
Headquarters: Atlanta, Georgia
Description: The name "Carvel" has been associated with the ice cream business since 1934. Carvel has operated retail stores selling ice cream and other frozen desserts and has granted franchises for these stores since 1947.
Franchise Offer: Carvel offers franchises for a single Full Store and a Carvel Express Store.
- Carvel Full Store: Produce and sell a full range of Carvel products.
- Carvel Store Express: Produce and sell selected Carvel products
Financial Assistance: Carvel Corporation does not offer financing for trade fixtures, opening inventory, or any other purpose.
Training and Assistance: The initial training programs for Carvel Full Stores and Carvel Express Stores uses various forms of training tools including use films, slide presentations, lectures, and instruction in ice cream production, pre/post assessments, skills assessments and in-store training. Before the franchisee opens his Carvel Full Store, the franchisor will provide training over 10 days. All new franchisees must complete, to the franchisor’s satisfaction, the New Franchise Orientation Program before opening their first Facility.
Territory: The franchise agreement does not give any territorial rights or protections in any geographic area. The franchise agreement licenses a Franchisee to manufacture and sell Carvel products at retail only from a specific Full Store or Carvel Express Store location that the franchisor accepts.
Term of Agreement and Renewal: The term of the franchise agreement is 20 years; a franchisee can renew or extend the term 20 years if they comply with the renewal requirements. The fee for renewal is the then-current initial franchise fee.
Obligations and Restrictions: The franchisee must personally supervise the full time operation of the facility. Carvel Corporation must approve the facility managers and they must complete the initial training program to the franchisor’s satisfaction.
The franchisee must offer and sell all services, products, and programs that the franchisor requires and that are part of the Carvel System.The Franchisee may not sell any menu item, product, service, or program that is not a part of the Carvel System without their prior written approval.
Total Number of Units in 2009: 480 US franchises, 43 Foreign Franchises, 20 Company owned units.
Investment Tables:
Initial Investment (Full Store):
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Real Estate and Improvements | Varies | Varies |
| Construction Built-Out | $85,000 | $185,000 |
| Architect | $3,000 | $10,500 |
| Permits and Licenses | $1,500 | $3,000 |
| Signs, Graphics and Grand Opening Advertising | $ 16,000 | $25,000 |
| Large Equipment | $78,000 | $87,000 |
| Molds and Small Wares Package | $10,000 | $10,000 |
| Opening Inventory | $7,624 | $7,624 |
| Training Expenses | $1,750 | $2,000 |
| Initial Inventory Labels | $800 | $800 |
| Security deposit | $1,500 | $6,000 |
| Business Insurance | $1,500 | $2,500 |
| Additional Funds | $10,800 | $19,300 |
| Total | $247,474 | $388,724 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | $1,93 per liquid gallon of Mix purchased |
| Advertising Contribution | $1,71 per liquid gallon of mix purchased |
| Minimum Advertising Contribution | $11,115 |
| Carvel Savings Plan | As negotiated between the franchisee and the franchisor for each gallon of Mix purchased |
| Replacement Manager Initial training Fee | Up to $500 per trainee |
| On-site training and Assistance | $50 per hour plus trainers’ expenses |
| Consulting Fee | $500 per day |
| Non-Proprietary and Proprietary Products | Varies |
| Interest | Lesser of Maximum legal interest rate, or 12% per year |
| Relocation Extension Fee | $1,000 per year of extension on term |
| Transfer Fee | $7,500 for a full Store; $5,000 for a Carvel Express Store |
| Renewal fee | The then current initial Franchise fee |
| Indemnification | Cost |
| Attorney’s Fees | Cost |
The above information has been taken from the UFOC/FDD of Carvel Franchising
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