Carvel Ice Cream Shoppe

Can you provide the specific reasons for the 14 unit closures in 2023, which was the highest closure year in your data?

What accounts for your termination rate of 1.2%, which is double the typical rate for food and beverage franchises?

How do you define and enforce the 12 termination causes listed in your franchise agreement, and why is this number below the industry standard of 15-20?

Bottom quartile locations are averaging $189,436 in gross sales, approximately 39% below the median. What support or corrective actions do you provide to underperforming units?

Your non-compete clause restricts franchisees to only 1 year and 3 miles post-exit. How does this limited restriction compare to your enforcement practices, and what recourse do you take against violations?

What are the specific requirements for the 9 renewal conditions you reference, and how many franchisees have renewed or been denied renewal in the past 3 years?

Given your 20-year initial term and 20-year renewal option, can you explain why you chose terms significantly longer than the industry standard of 7.75-10 years for initial terms?

Your franchise agreement requires exclusive purchases of proprietary ingredients and products. What percentage of a franchisee's cost of goods sold typically goes to franchisor-approved suppliers?

How is the renewal fee of $6,100 calculated, and could you clarify whether this is indeed 20% of the then-current franchise fee?

With encroachment protection in place, how many franchisees have filed complaints about encroachment, and how were those disputes resolved?

Can you provide the actual unit count and closure data broken down by territory type or region to help identify geographic risk factors?

What specific support programs, training, or operational changes have you implemented in response to the increasing closure trend from 2021-2023?

For units that were transferred, what was the failure rate of transferred units in their first 2 years of operation under new ownership?

How many of the 4-5 transfers per year involved franchisees exiting due to financial stress versus those seeking expansion or strategic exits?

Given your strong Support & Training score of 100, can you detail the specific training and ongoing support provided to help franchisees improve sales performance?

What is your policy on franchisee buybacks or company-operated units, and how many locations does the franchisor currently operate directly?

Can you provide Item 19 financial performance data broken down by: (a) location type (mall vs. standalone), (b) years in operation, and (c) geographic region?

The dispute resolution clause requires binding arbitration in Georgia. How many disputes have gone to arbitration in the past 3 years, and what were the outcomes?

What happens to a franchisee's territory if they are terminated for cause versus allowed to non-renew? Can you provide examples of recent termination cases?

Are there any pending regulatory investigations, consumer complaints, or class-action suits that were not included in the litigation data provided?