Carvel Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,500
Investment required
$38,000 - $1,032,000
Royalty fee
$3.02 per gallon

Carvel: A Pioneer in the Ice Cream Industry

Carvel, a cherished name in the ice cream world, began its journey in 1934 when Tom Carvel started selling ice cream from his vending truck. His innovative methods led to the establishment of the first retail ice cream company in the United States. By 1936, the Carvel Corporation was officially formed, introducing the "no air pump" super-low temperature ice cream that gave the brand its distinct texture and flavor. In 1947, Carvel made history by franchising the first retail ice cream shop in the U.S., paving the way for extensive growth and recognition.

Carvel's story is characterized by ongoing innovation and strong community ties. From launching the Flying Saucer® in 1951 to celebrating major milestones like opening the 100th shoppe and marking Fudgie the Whale®'s 40th birthday, the company has continually evolved. Carvel's dedication to quality and freshness has remained steadfast, with all products crafted in-store to guarantee the finest customer experience.

Originally headquartered in Yonkers, New York, within the versatile Carvel Inn, the company relocated its headquarters to Farmington, Connecticut, in the 1990s. This strategic move aimed to enhance its position in the dessert market, support its growing product line, and expand its franchising efforts. It was part of a broader strategy to innovate and thrive in a dynamic market, including new store designs, an expanded product range, and entry into supermarket distribution.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Carvel offers 5 types of franchises:

Type Initial Investment
HOSTED EXPRESS SHOPPE $38,195 to $94,940
FULL SHOPPE $379,045 to $590,860
EXPRESS SHOPPE $70,895 to $213,860
ICE CREAM TRUCK $114,595 to $300,180
CINNABON CO-BRANDED SHOPPE $428,750 to $1,031,500

We are summarizing below the main costs associated with opening a Carvel New Full Shoppe franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

A Carvel New Full Shoppe

Type of Expenditure Low High
Initial Franchise Fee $30,500 $30,500
Construction and Build Out Costs $123,600 $185,400
Permitting $515 $1,030
Equipment Package $128,750 $154,500
Furniture $3,625 $4,150
Menu Board, Graphics and Interior Signage $9,800 $22,250
Exterior Signage $5,150 $12,360
Computer System $7,400 $27,400
Smallwares $7,500 $9,270
TV/Music $1,030 $2,600
Architect/Engineer $5,150 $10,300
Rent $2,000 $7,500
Grand Opening Marketing $5,000 $6,500
Legal and Accounting Fees $5,000 $10,000
Insurance $1,125 $6,300
Misc. Opening Costs/Office Supplies $1,800 $6,800
Security Deposits $0 $15,000
Management Training Program Fee $0 $3,000
Travel and Living Expenses during Training $3,600 $5,700
On-Site Training Fee $0 $5,300
Opening Inventory $5,000 $15,000
Additional Funds - 3 Months $32,500 $50,000
Total Initial Investment $379,045 $590,860

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Number of units

2024
Franchised units

327

328

326

Company-owned units

0

0

0

Total units

327

328

326

Franchise Disclosure Document

Training 

Carvel offers an extensive Management Training Program for franchisees and their designated trainees, incorporating both essential and optional training components to ensure franchise success.

Mandatory Management Training Program

The program requires a specific number of trainees, as outlined in the franchise agreement, to complete Carvel's Management Training Program by a set deadline. The franchisor has the authority to determine the successful completion of the program. If a trainee fails to complete the program, they must re-enroll in the next scheduled training session at no extra cost. Failure to meet the training requirements by the stipulated number of trainees may result in the termination of the franchise agreement. Carvel may authorize select franchisees to conduct the Management Training Program on its behalf, provided they meet certain conditions, such as having a Certified Training Manager and operating a Certified Training Business.

Additional Training and Support

Carvel may offer extra training, conferences, and seminars covering various aspects of the franchise system. Attendance at these events may be mandatory for franchisees, their managers, and supervisory staff. For franchisees opening their first or second Carvel franchise, the franchisor provides on-site training at the start of operations at no additional cost. Carvel also offers consulting services and additional support post-opening, which may incur extra fees.

Training Fees

If the in-person portion of the Management Training Program is conducted outside the franchisor's headquarters, franchisees are responsible for the Regional Training Fee, which ranges from $750 to $1,500 per trainee.

Territory Protection

Carvel does not offer exclusive territory or protected rights under the Franchise Agreement, with the exception of specific conditions related to Co-Branded Shoppes in Streetside Locations. Franchisees are permitted to manufacture and sell approved products solely from their designated location, without any exclusive territorial rights, except for the right to retail approved products from their Shoppe.

Co-Branded Shoppes in Streetside Locations

For Co-Branded Shoppes in Streetside Locations, although no exclusive territory is provided, franchisees receive a limited territory with certain protected rights known as an "Area of Protection." Within this Area of Protection, Carvel will not establish or operate, nor license anyone else to establish or operate, another Co-Branded Shoppe at a Streetside Location during the term of the Franchise Agreement.

However, Carvel retains the right to operate or license others to operate single-branded Shoppes or Shoppes that do not feature the same combination of brands as the Co-Branded Shoppe within the Area of Protection. Carvel and its affiliates also reserve the right to engage in any business activities under any name in any geographic area, including areas close to the franchisee's location.

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