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Carvel Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsGeorgiaFranchising since 1947
BAbove averageAbove average59/100Editorial grade from public filings; not investment advice.
Investment
$428K – $1.1M
Disclosed sales
$496K
gross sales, not profit
SBA charge-off
Under 10 loans (4)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00475FDD 2026Data QualityExcellent91%
Manager-run OKNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Carvel is an ice-cream franchise known for its soft-serve, hand-dipped scoops, and signature ice-cream cakes. Franchisees run shops managing made-to-order treats, cake decorating, and counter service.

FranchiseVerdict summary · 2026

A Carvel franchise requires a total initial investment of $428K – $1.1M, including a $6K – $31K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $496K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$428K – $1.1M
68th pct Service Resta…
Avg gross sales
$496K
Net sales4th pct Service Resta…
Royalty
6.0%
48th pct Service Resta…
Units
360
87th pct Service Resta…
SBA charge-off
N/A

Quick verdict · Quick-Service Restaurants · color = vs category peers

Total Investment
$428K – $1.1M
Median $486K
above median ↑, worse than category
Franchise Fee
$6K – $31K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$33K – $50K
Median $33K
above median ↑, worse than category
Avg Revenue
$496K
Median $975K
below median ↓, worse than category
Net sales
Royalty Rate
6.0%
Median 5.5%
near median
Ongoing Fees
9.0% of rev
Median 7.5%
above median ↑, worse than category
SBA Charge-Off Rate
Under 10 loans (4)
Insufficient SBA coverage: 4 loans, rate hidden below 10
System Size
360 units
Median 18 units
above median ↑, better than category
Turnover Rate
3.3%
Median 0.0%
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
6 cases
Review carefully

Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $428K – $1.1M including a $6K franchise fee, 6.0% ongoing royalty.
  • RETURNSAverage unit revenue of $496K/year (median $470K).
  • RISKVerdict B (Above average), verdict score 59/100 (higher is better).
  • GROWTHPositive: net +23 franchised outlets in the latest year (35 opened, 12 closed); 132 signed but not yet open (Item 20).
  • TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Carvel Franchisor SPV LLC
Parent company
GoTo Foods Systems LLC
FDD Item 1, page 10 of the 2026 FDD
Ultimate parent
GoTo Foods LLC (formerly Focus Brands LLC)
FDD Item 1, page 10 of the 2026 FDD
Predecessor
Carvel LLC (formerly Carvel Corporation)
Prior franchisor entity
CEO title
Chief Executive Officer
Omer Gajial
Incorporated in
Delaware
HQ
5620 Glenridge Drive NE, Atlanta, Georgia 30342
Auditor
PricewaterhouseCoopers LLP
Audited financials
Franchisor revenue
$321.4M
vs $308.9M prior year

Same owner · FDD Item 1, page 10

6 other brands on this site name GoTo Foods LLC (formerly Focus Brands LLC) as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Omer Gajial
Headquarters
Georgia
Founded
1934
FDD year
2026
States available
23

Can you afford it, and what does the money buy?

Entry cost runs 52% above the typical quick-service restaurants franchise.

Total investment (Item 7)$428K – $1.1MCited, not corroborated — printed on page 44 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Franchise fee$5,500Cited, not corroborated — printed on page 45 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Royalty6.0%Cited, not corroborated — printed on page 31 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.0%Cited, not corroborated — printed on page 32 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$33K – $50K

Source: FDD 2026 · Items 5–7

FDD Item 7 · 2026 filing

Initial investment breakdown

Carvel: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$6K$6K
Working capital (3–6 mo)$33K$50K
Equipment, build-out, other$390K$996K
Total initial investment$428K$1.1M

Source: Carvel 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$428K – $1.1M
Bottom third — review vs category
Liquid capital req'd
$33K – $50K
Bottom third — review vs category
Franchise fee
$6K – $31K
Top 40% of category vs category
Royalty
6.0%
typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Ongoing fees · Item 6

Carvel: Item 6 recurring fees
FeeAmount
Royalty6.0% of net sales
Marketing / ad fund3.0% of net sales
Training fee$3K
Transfer fee$18K
Renewal fee$7K
Inventory (initial)$5K – $17K
Total fee load9.0% of rev

What do units actually make?

Average unit sales run 49% below the quick-service restaurants norm.

Avg gross sales$496K

Reported as net sales, not gross sales

Cited, not corroborated — printed on page 92 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$470KCited, not corroborated — printed on page 92 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typehistorical Net Sales quart…
Sample size104 outlets

Source: FDD 2026 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Carvel until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$781K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Carvel unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $496,287 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $428K–$1.1M (midpoint used)
FDD reports $33K–$50K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$781K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2026 FDD

Financial Performance

Reported as net sales, not gross sales

Avg gross sales
$496K
Per unit, per year
Median gross sales
$470K

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
historical Net Sales quartile table (single-branded Streetside franchises)
Sample size
104 outlets
vs category median 19 · large
Range (low → high)
$84K→$1.5MCited, not corroborated — printed on page 92 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Quartile band
$249K→$780K
Bottom 25% → top 25%
Reporting year
2024
Fiscal year the figures cover
Source filing
FDD 2026
Disclosed in the 2026 filing, covering 2024
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank4th
Item 19 reporting methods vary across brands
Investment cost rank68th
Lower investment ranks lower (better)
Royalty rate rank48th
Lower royalty = lower percentile (better)
Unit count rank87th
vs Quick-Service Restaurants peers
Risk score rank31th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →
Revenue insight

Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $496K/year in gross sales. Revenue-to-investment ratio: 0.7x.

Fee burden

Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System expanding at 10.1% CAGR over 3 years across 360 units — operators are staying and new ones are joining.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Quick-Service Restaurants medians

How Carvel Compares

Metric
Carvel
Category median
vs median
Investment
$740K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$496K
$975Kmiddle half $664K–$1.4M · n=284
Below median, worse than category
Unit Count
360
18middle half 5–79 · n=755
Above median, better than category

Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units360Cited, not corroborated — printed on page 93 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth+10.1% (favorable vs category)
Turnover rate3.3% (favorable vs category)

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
360
Opened
35
Last reporting year
Closed
12
Terminated
8
Franchisor ended the franchise (per Item 20)
Non-renewed
4
Term expired, not renewed (per Item 20)
Turnover rate
3.3%
Company-owned
1
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
+10.1%
Net unit change over 3 years
3-yr CAGR
+10.1%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
8
Not renewed
4
Transferred
10
Reacquired
0
Franchisor bought back
Signed, not yet open
132
0.37 per open outlet · Item 20 Table 5
Projected new
25
Franchisor's next-year forecast
Transfer rate
5.4%
Owners selling to other franchisees
Termination rate
1.5%
Franchisor-initiated terminations
Ceased ops
1.5%
Units that stopped operating
2023
326
Franchised units
2024
336+10
Franchised units
2025
359+23
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 11 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 11 states
No contacts on file

States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.

Where the owners are · Item 20 owner list

394 current owners across 20 states.

  • NE 274
  • FL 36
  • CO 23
  • MI 11
  • MA 9
  • PE 8
  • TE 7
  • CA 6
  • IL 5
  • DE 2
  • GE 2
  • OH 2
  • +8 more states

Counts only, from the list the franchisor prints in Item 20; 7 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.

Total loans
4
Loan volume
$679K
Median loan
$59K
50th percentile
Charge-off rate
Under 10 loans (4)
Insufficient SBA coverage: 4 loans, rate hidden below 10

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
Under 10 loans (4)
5-yr charge-off
Under 10 loans (4)
Loans approved 2021+
Active lenders
4
Defaults
N/A

Explore lender portfolios on Bank Reports or regional data on State Reports.

What could kill this investment?

SBA charge-offUnder 10 loans (4)
Verdict score59/100 (higher is better)
Litigation6 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average59Verdict score 59/100

Carvel presents caution-level risk due to declining unit economics, absence of financial validation data, unprotected territory, and parent company litigation suggesting systemic operational issues.

Moderate confidence±10 pts
4969

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Two pending cases involving Carvel entities directly: Carvel Franchisor SPV, LLC v. Oluf Inc. and Stephen Oluf Winick (N.D. Ga., filed 2025) - Carvel sued a former franchisee for unauthorized post-termination operation and trademark infringement; and Oluf Inc. v. Carvel Corporation (Cal. Superior Court, filed 2025) - franchisee petition to compel arbitration over alleged misrepresentation and breach of contract claims. Additional disclosures relate to settled actions against sister GoTo Foods affiliates (Arby's, Dunkin' Brands, Jimmy John's), none alleging conduct by Carvel itself.

Largest disclosed settlement: $650,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · PricewaterhouseCoopers LLP

Franchisor revenue (Item 21)

Yr 1: $321.4MYr 2: $308.9M

Franchisor entity revenue (not unit-level)

ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: Yes
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 59 / 100 verdict

  1. 01MINORDeclining unit count (3.1% YoY contraction indicates system shrinkage)
  2. 02MINORUnprotected territory creates direct competition risk from other Carvel franchisees
  3. 03MINORParent company litigation history (no-poaching + data breach) suggests operational/compliance vulnerabilities affecting franchise ecosystem
  4. 04MINOR20-year commitment is lengthy given brand's contracting footprint and uncertain profitability

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail6 matters · Item 3

Litigation cases

The franchisor

Pending (1)

  • Carvel Franchisor SPV, LLC v. Oluf Inc. and Stephen Oluf Winick

    pending

    Brought against a franchisee · filed 2025-04-03 · United States District Court for the Northern District of Georgia · 1:25-cv-01776-ELR

    “Carvel Franchisor SPV, LLC v. Oluf Inc. and Stephen Oluf Winick (United States District Court for the Northern District of Georgia, Case No. 1:25-cv-01776-ELR, filed April 3, 2025). On April 3, 2025, we filed a lawsuit against our former franchisee Oluf Incorporated (“Oluf”) and its owner, Stephen Oluf Winick (“Winick”) after they continued to operate a Shoppe without authorization after we”Page 27 of the 2026 FDD, Item 3

Parent, affiliates and predecessor

Pending (1)

  • Oluf Inc. v. Carvel Corporation

    pending

    Brought by a franchisee · Carvel Corporation (now Carvel LLC, 'our predecessor' per Item 1) · filed 2025-04-01 · Superior Court of California, Los Angeles County · 25STCP01211

    “Oluf Inc. v. Carvel Corporation (Superior Court of California, Los Angeles County, Case No. 25STCP01211, filed April 1, 2025). Our former franchisee, Oluf, filed a “Petition for Order Compelling Arbitration and Appointing Neutral Arbitrator” against Carvel Corporation. The petition seeks to compel arbitration in Los Angeles concerning disputes under the franchise agreement, including alleged”Page 27 of the 2026 FDD, Item 3

Concluded (4)

  • New York v. Dunkin’ Brands, Inc.

    concluded

    Government or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019

    “New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019). In this matter, the N.Y. Attorney General (“NYAG”) filed a lawsuit against our affiliate, DBI, related to credential-stuffing cyberattacks during 2015 and 2018. The NYAG alleged that the cyber attackers used individuals’ credentials obtained from elsewhere on the Internet to”Page 28 of the 2026 FDD, Item 3

    Outcome:“On September 21, 2020, without admitting or denying the NYAG’s allegations, DBI and the NYAG entered into a consent agreement to resolve the State’s complaint. Under consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers, and maintain a comprehensive information security”

  • The People of the State of California v. Arby’s Restaurant Group, Inc.

    settled

    Government or regulatory action · Arby’s Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397

    “The People of the State of California v. Arby’s Restaurant Group, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019). On March 11, 2019, our affiliate, Arby’s Restaurant Group, Inc. (“ARG”), entered into a settlement agreement with the states of California, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina,”Page 27 of the 2026 FDD, Item 3

    Outcome:“Under the settlement agreement, ARG paid no money but agreed (a) to remove the disputed provision from its franchise agreements (which it had already done);”

  • The People of the State of California v. Dunkin’ Brands, Inc.

    settled

    Government or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597

    “The People of the State of California v. Dunkin’ Brands, Inc., (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of “no-poaching” provisions in”Page 28 of the 2026 FDD, Item 3

    Outcome:“The Attorney General of the State of California filed the above-reference lawsuit in order to place the settlement agreement in the public record, and the action was closed after the court approved the parties’ stipulation of judgment.”

  • In the Matter of Jimmy John’s Franchisor SPV LLC

    concluded

    Government or regulatory action · Jimmy John’s Franchisor SPV LLC · Securities Commissioner of Maryland · 2025-0122

    “In the Matter of Jimmy John’s Franchisor SPV LLC (Securities Commissioner of Maryland, Case No. 2025-0122). On March 28, 2022, Jimmy John’s filed a Franchise Disclosure Document (FDD) with the Maryland Securities Division as part of a notice of exemption from franchise registration. In this filing, Jimmy John’s listed the former franchisees but omitted the required contact information for the”Page 28 of the 2026 FDD, Item 3

    Outcome:“Under the terms of the Consent Order, Jimmy John’s agreed to pay a $30,000 civil monetary penalty, to permanently cease and desist from the offer or sale of franchises in violation of the Maryland Franchise Law, and to disclose the existence of the Consent Order in future franchise disclosure documents.” (page 29)

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal term20 yrs
TerritoryNone (caution)
Initial training95 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Renewal term20 years
Allowed renewalsℹ1
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Territory radius1 mi
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ3 mi
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ23
Curable defaultsℹ10
Mandatory arbitrationYes
Arbitration locationGeorgia (metropolitan area of franchisor's principal place of business)
Jury trial waiverNo
Governing lawGeorgia
Litigation count6
View Item 3 litigation summary

Two pending cases involving Carvel entities directly: Carvel Franchisor SPV, LLC v. Oluf Inc. and Stephen Oluf Winick (N.D. Ga., filed 2025) - Carvel sued a former franchisee for unauthorized post-termination operation and trademark infringement; and Oluf Inc. v. Carvel Corporation (Cal. Superior Court, filed 2025) - franchisee petition to compel arbitration over alleged misrepresentation and breach of contract claims. Additional disclosures relate to settled actions against sister GoTo Foods affiliates (Arby's, Dunkin' Brands, Jimmy John's), none alleging conduct by Carvel itself.

Items 10, 11

Training & Operations

Classroom training
25 hrs
On-the-job training
70 hrs
Training location
Online modules (classroom) and Certified Training Locations (on-the-job); corporate HQ in Atlanta, GA
Ongoing training
Required
Time to open
12 mo
From signing to launch
Site selection
franchisor
Franchisor financing
Not offered
Item 10
POS system
Designated POS System (vendor not named)
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Designated POS System (vendor not named)

Item 20 · call current owners

Franchisee Contacts

401 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 401 contacts · $49
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(718) 316-••••NE
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(516) 561-••••NE
(631) 377-••••NE
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(516) 922-••••NE

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Carvel franchise?

The total investment to open a Carvel franchise ranges from $428K – $1.1M, with an initial franchise fee of $6K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Carvel franchise owners earn?

According to Item 19 of the Carvel FDD, the average gross sales per unit is $496K. The median is $470K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Carvel?

Carvel is franchised by Carvel Franchisor SPV LLC. Its parent company is GoTo Foods Systems LLC. The ultimate parent named in the FDD is GoTo Foods LLC (formerly Focus Brands LLC). Source: FDD Item 1, 2026 filing.

What is Item 19 in the Carvel FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Carvel FDD and qualifies whose outlets they describe.

What is Carvel's franchise failure rate?

SBA 7(a) loan charge-off data is not available for Carvel (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.

How many Carvel franchise locations are there?

As of their most recent FDD filing, Carvel has 360 total units in the United States, including 359 franchised units and 1 company-owned units. 35 new units were opened in the latest reporting year.

Is Carvel a good franchise to buy?

FranchiseVerdict rates Carvel as a B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.

Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.

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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.