SINCE 1934 FRANCHISE KIT
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1 SINCE 1934 FRANCHISE KIT
2 IT S WHAT HAPPY TASTES LIKE Thank you for your interest in joining the Carvel franchisee family. The enclosed franchise kit will give you a broad overview of our company, our valuable resources, and most importantly, how you can join the team. Carvel is America s favorite neighborhood soft serve ice cream franchise. Carvel serves handmade, signature fountain and take-home treats, and all-ice cream cakes in a fun and exciting atmosphere where moms, kids, and families can spend quality time. Everyone knows what happy feels like, but what does happy taste like? Welcome to Carvel, where we ve been serving up smiles for nearly 80 years. From cones to cakes and novelties, Carvel s world-famous, soft serve ice cream puts the happy in everything. Today, we continue to carry on our founder Tom Carvel s passion and commitment to Franchise Partners through the Carvel College of Ice Cream Knowledge and offering additional Franchise Partner support. With a dedicated team of Franchise Business Consultants (FBCs), marketing professionals and Franchise Advisory Council, a franchised Carvel is never an island. The focus is constantly on trying to better the brand and drive success for the greater good. Being a part of the multi-brand FOCUS Brands Inc., headquartered in Atlanta, Georgia, creates continued opportunities for Carvel growth for our existing, as well as potential new Franchise Partners. With the support provided by Carvel, the future has never looked so delicious. Thank you for your interest in Carvel! All the best, Chris Morton Franchise Sales
3 CARVEL OVERVIEW Carvel is the nation s first retail ice cream franchise, the leading manufacturer of uniquely shaped ice cream cakes, and a leading provider of premium soft serve and hand-dipped ice cream products. Since the company s founding in 1934, Carvel has become one of the best-loved and most recognized names in its industry. Carvel products are made fresh daily in each ice cream shoppe. We serve delicious, high-quality cakes, novelties, cups, cones, sundaes and shakes. In addition, the company sells its famous ice cream cakes through over 10,000 supermarket outlets. Thomas Carvel was a young, Greek immigrant who had a dream of selling the world s best ice cream. In May 1934, his master plan literally hit a bump in the road when his ice cream truck got a flat tire just outside of Hartsdale, New York. Much to his surprise, cars pulled over to purchase the melting treats from the back of his truck. Tom realized that he could sell a lot more ice cream from a fixed location thus, the first Carvel was born. In 1947, Carvel became the first retail ice cream shop to franchise its brand, four years before his friend Ray Kroc began to franchise McDonalds. With fervor for perfection, Tom was committed to his franchisees and worked with them daily to help each one effectively and efficiently run their operations. In support of this commitment, Carvel opened its first training school in 1949 for ice cream shop owners, known as the Carvel College of Ice Cream Knowledge, but affectionately referred to as Sundae School. After more than 75 years, Carvel enjoys brand awareness of over 90% in its core markets and continues to build upon its rich heritage. This sweet success has earned the company a place in the nation s American History Museum in the Smithsonian Institute. In addition, Carvel holds the Guinness World Record for the Largest Ice Cream Pyramid (2002) and the Largest Ice Cream Cake (2004 January 2006). In 2001, Carvel was purchased by affiliates of Roark Capital Group, a private equity firm in Atlanta, Georgia. In 2004, Cinnabon, Inc. and Seattle s Best Coffee International joined Carvel to form a new food service company FOCUS Brands Inc. Since forming, FOCUS Brands is also the franchisor of Schlotzsky s, Moe s Southwest Grill, Auntie Anne s and the franchisor of Seattle s Best Coffee on certain military bases and in certain international markets..
4 THE CARVEL PROCESS Step 1 Complete the Carvel Request for Consideration Form You have already completed step one! We will be contacting you shortly on the phone number and or you provided. Step 2 Introductory Call with a Carvel Prequalification Manager At this time, you ll officially be introduced to Carvel. We ll talk to you about the general qualification requirements, both financial and operational, as well as your territory of interest. Step 3 Have an Introductory Call with a Carvel Sales Director Now you re ready to have a detailed discussion about the Carvel ice cream franchise opportunity with one of our sales directors. We ll talk to you about specific qualification requirements and overview the process to own a Carvel Full or Express Shoppe franchise location. Step 4 Receive Carvel s Franchise Disclosure Document and Application If you are interested in moving forward, we will provide you with our Franchise Disclosure Document (FDD), which explains the Carvel ice cream franchise opportunity in detail and includes a copy of the franchise agreement you ll be signing. You will also receive a Carvel franchise application. You will thoroughly review the FDD with our Sales Director. Step 5 Submit Application for Approval and Complete Due Diligence When your application has been submitted and is being processed for review by the approval committee, you will complete your research on the Carvel ice cream franchise. This includes discussions with current Franchise Partners and members of the Carvel s Executive Team, generating restaurant proformas and beginning to create your business plan. Once you have been approved, your franchise agreements will be sent to you. Step 6 Sign Agreements and Welcome to Carvel! Once you have signed your agreements, they are received and countersigned in Atlanta, and all fees are paid, you are officially a Carvel franchise partner. WELCOME TO CARVEL!
5 THE INVESTMENT AND FAQ Carvel is seeking highly motivated, experienced professionals with prior restaurant and business experience to continue Carvel s ice cream franchise development. It is important that Carvel Franchise Partners: Possess restaurant management experience as an owner and/or operator Have an enthusiasm for the Carvel brand Show passion about owning their own ice cream franchise business and creating lasting memories for their Guests Enjoy giving back to their communities The initial franchise fee to open one Full Carvel Shoppe is $30,000. The initial franchise fee to open one Express Carvel Shoppe is $7,500. Additionally, potential Franchise Partners should possess cash liquidity of $120,000 and a net worth of at least $400,000. The total initial investment for a Full Shoppe, as stated in Item 7 of the 2013 Carvel Corporation FDD, ranges from $249,375 to $364,550. The total initial investment for an Express Shoppe, as stated in Item 7 of the 2013 Carvel Corporation FDD, ranges from $24,100 to $71,560. Do I need previous restaurant or franchising experience to become a Carvel Franchise Partner? Yes. Both are preferred and restaurant experience is required. However, if you are a great prospect and do not have sufficient restaurant experience, we do offer an Internship Program, which is a six-day, unpaid evaluation program where you will get both restaurant and classroom training. NOTE: This does not replace our ice cream franchise certification training program.
6 FAQ (continued) Is Carvel offering single and multi-unit opportunities? We are currently seeking qualified candidates to open both single and multi-unit ice cream franchises. What are the initial franchise and royalty fees? Initial Franchise Fee: Full Shoppe: $30,000 Express Shoppe: $7,500 Royalty fee: Marketing Fee: Full Shoppe: $2.22 per liquid gallon of mix you purchase Express Shoppe: No continuing royalty payment, but must purchase Carvel Mix at our current price for Express Shoppes. The mix price for Express Shoppes is higher than the mix price charged to Full Shoppes, which includes additional revenue to Carvel (e.g. royalties). Full Shoppe: $1.95 per liquid gallon of mix you purchase Express Shoppe: Not applicable What type of training will I receive as a new Carvel Franchise Partner? Manager-in-Training Program: Classroom and in-shoppe training for a Full Store Full and Express Shoppes will be equipped with elearning access to video modules to assist in ongoing training, along with crew training guides for both core menu items and promotional items On-Going Training: Hourly Employee Training Tools and Promotion Training Guides Regular visits from a Franchise Business Consultant and the Carvel Training Department Does Carvel offer financing? No, we do not provide financing; however, we do have a relationship with a third party who will assist you in obtaining the financing you will need.
7 FAQ (continued) How soon can I expect my Carvel franchise to open? Your first ice cream franchise (Full Shoppe) will generally open within 12 months of signing your franchise agreements. Express Shoppes can open within three months from signing your franchise agreement. If you have real estate already identified for your Shoppe, these timelines can be greatly reduced. Where are Carvel Shoppes generally located? Carvel Full Shoppes are generally located in strip centers with the end-cap being preferred. Site Criteria: 1,000 square feet with a 20 square foot frontage. The Carvel Express Shoppe is designed for flexibility to allow the sale of Carvel ice cream in captive audience locations and co-branding situations. Site Criteria: square feet with a 3 square foot frontage. Will I have a protected territory? A protected territory is given to every traditional Carvel ice cream franchise location. Will I receive guidance on purchasing Shoppe equipment and supplies? Yes. Carvel has a preferred vendor program that covers all aspects of opening your ice cream franchise. Will I receive assistance in planning a Carvel grand opening? Yes. Every opening of a Carvel receives training, operations and marketing support, PR and POS support.
8 WHY CARVEL Incredible brand name with a loyal and passionate customer base Leader in innovation in category Large and growing industry Flexible concepts Highest franchise support in the ice cream industry Franchise-focused ownership team Thanks again for expressing interest in joining the Carvel Franchisee Family. Our sales team will be in touch shortly, but if you re anxious to get started, call or SHERI FERRAVANTE (914) sferravante@carvel.com
9 The Carvel Franchise is offered by Carvel Corporation 200 Glenridge Point Parkway Suite 200 Atlanta, GA THE FOLLOWING APPLIES TO TRANSACTIONS GOVERNED BY THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA ONLY THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. THE FOLLOWING APPLIES TO TRANSACTIONS GOVERNED BY THE NEW YORK FRANCHISE SALES ACT ONLY This advertisement is not an offering. An offering can only be made by a Prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
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