• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Only
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

Franchise Costs: Detailed Estimates of Carvel Franchise Costs (2017 FDD)

Last updated on October 3, 2017 by Franchise Chatter Leave a Comment
in Franchise Costs, Frozen Dessert Franchise

Before-After ROI Posters-24x36



Learn Which Franchises Can Make You Rich

This post was updated on October 3, 2017 to reflect information from Carvel’s 2017 FDD (Item 7).

Detailed Estimates of Carvel Franchise Costs Based on Item 7 (Estimated Initial Investment) of Carvel’s 2017 Franchise Disclosure Document

For Full Shoppe

1.  Initial Franchise Fee:  $30,000

America's Most Lucrative Franchises of the Year

2.  Real Estate:  Amount Not Specified

3.  Leasehold Improvements:  $80,000 to $136,000

  • Carvel franchisees typically lease Shoppe premises under a written agreement. You make monthly rental payments directly to your landlord. The annual rent varies with the location and size of the premises.
  • You must establish the Shoppe at your own expense. This includes:
  • buying or leasing a building or store premises (typically 800 to 1,600 square feet for a Full Shoppe, and 100 to 500 square feet for an Express Shoppe or Hosted Express Shoppe);
  • building the Shoppe out to Carvel’s specifications;
  • purchasing exterior trademarked signs;
  • purchasing or leasing frozen dessert manufacturing and merchandising equipment, utensils, related trade fixtures, and furnishings; and
  • purchasing inventory used in the manufacture, preparation, and dispensing of Carvel products.
  • You pay for these items and services. The cost varies for each Shoppe according to the location (i.e. shopping center, free-standing location, suburban, downtown, etc.), the amount of equipment, the construction or alteration costs, and the services involved.
  • You generally must provide a security deposit to your landlord and you must negotiate the terms under which the security deposit is refundable.
  • You must select the location for your Shoppe. Carvel expects you to retain an independent expert to evaluate the proposed site. Carvel cannot estimate the cost of this expert, which will depend on such factors as the intended area, expertise, and the extent to which studies or surveys are necessary.
  • If you are opening a Hosted Express Shoppe, these costs will likely be incurred in connection with locating and leasing the site for the Host Facility.

4.  Architect:  $7,500 to $10,000

  • You must hire an architect at your own cost, subject to Carvel’s approval, to make any necessary changes to the standard equipment layout and specifications for a Shoppe. The cost of these architectural services will depend on the size and shape of the premises and is generally not refundable.

5.  Permits and Licenses:  $1,500 to $10,000

  • You must obtain and pay for all necessary permits, licenses, and security deposits, including security deposits for utilities and other necessary prepaid expenses. Security deposits may be refundable in certain situations, but permits and license fees generally are not refundable.

6.  Signs and Graphics:  $5,000 to $9,500


💰How Much Franchise Can You Afford? Use Our Free Financial Calculator



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)


7.  Equipment, Millwork, Furniture, Fixtures, and Point-of-Sale System:  $94,000 to $160,000

8.  Molds and Smallwares Package:  $4,000 to $9,000

9.  Subtotal:  Capital Investment:  $222,000 to $364,500

10.  Opening Inventory:  $7,600 to $10,000

  • You must purchase a sufficient initial inventory of Approved Products to open the Shoppe.

11.  Training Expenses:  $1,700 to $3,000

Franchises Ranked by Average Revenues and Profits

12.  Security Deposits:  $1,500 to $6,000

13.  Business Insurance:  $2,000 to $9,000

  • You must obtain and maintain during the term of your Franchise Agreement, at your expense, a comprehensive business insurance program, including property, commercial general liability, automobile liability, business property, umbrella, and workers’ compensation insurance.
  • In addition, Carvel may require you to maintain employment practices liability insurance and cyber liability insurance with limits up to $1,000,000.
  • This figure estimates the cost of your insurance premiums for your first year of operation based on Carvel’s minimum requirements.
  • It is difficult for Carvel to estimate the cost of required insurance, since the cost varies widely depending on such factors as the size and location of the Shoppe premises, the gross sales actually achieved, the other types of insurance coverage included in the policy, and the value of the items insured.

14.  Additional Funds (3 months):  $10,800 to $18,000

  • This estimates the funds needed to cover your expenses during the first 3 months of operation.
  • You will need capital to support ongoing expenses, such as payroll, uniforms, supplies, initial advertising, and miscellaneous expenses. These purchases are generally not refundable.
  • These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital.

15.  Grand Opening Advertising:  $5,000

  • You must spend at least $5,000 for a grand opening advertising program for each Full Shoppe and each Express Shoppe (“Grand Opening Obligation”).
  • For a Hosted Express Shoppe, the amount of the Grand Opening Obligation will be reduced to an amount not to exceed $3,000.
  • These purchases are generally not refundable.

16.  Subtotal:  Opening Expenses:  $28,600 to $51,000

17.  Total Initial Investment:  $250,600 to $415,500

  • The figures above include estimated labor, utilities, and miscellaneous supplies, but do not include rent, real estate costs, royalty and advertising fees, replacement inventory, and packaging, etc.
  • Carvel and its affiliates do not finance your initial investment. The availability of financing will depend on such factors as the availability of financing generally, your creditworthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.

For an Express Shoppe

  • The total estimated initial investment necessary to begin operation of a Carvel Express Shoppe ranges from $39,600 to $133,400.

For a Hosted Express Shoppe

  • The total estimated initial investment necessary to begin operation of a Carvel Hosted Express Shoppe ranges from $33,040 to $58,365.
  • The range of estimated costs relates to a Hosted Express Shoppe being built in connection with the construction of a Host Facility, so that a number of costs already being incurred to build-out and begin operating the Host Facility (e.g. permitting, insurance, construction of leasehold improvements, equipment, etc.) would often alleviate or reduce many of the costs that would otherwise apply to build out the Hosted Express Shoppe.
  • These figures do not include any of the costs relating to the investment required for the Host Facility.
  • If you are building a Hosted Express Shoppe that will be located in an existing Host Facility, you should review the range above for the standard Express Shoppe that is not located in a new Host Facility.

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator



🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)





Franchise Winners and Losers Last Year

Tagged as: Carvel

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk: Our Latest Views on Pop-A-Lock's Annual Net Revenue Range, Resale Multiple, and Failure Rate (2014 FDD)

Next post: FDD Talk: Our Latest Views on the Total Purchases of Products by Mac Tools Franchisees and Distributors (2014 FDD)

Primary Sidebar

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator

🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

🤷‍♀️Why Work with a Franchise Broker?

A good franchise broker can help you to find the right franchise. They provide:

✅ Recommendations based on their assessment of historical financial performance (Item 19, FDD) instead of just franchise marketing materials.

✅ Franchise matches based on your goals, strengths, and passions.

✅ Demographic analysis to find franchises that could work in your area.

✅ A portfolio of franchises to meet almost any budget, interest, or goals.

✅ Referrals to other specialists, like franchise lawyers.

✅ Information on financing sources.

✅ Coaching in the due diligence process, based on experience with dozens of candidates.

✅ Help presenting yourself in the best light, to increase your chances of success.

✅ No fees for their services: franchisors pay them a success fee if an agreement is signed.

To get started, fill out this form, and a specialist from the Franchise Brokers Association will reach out to you.

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🚀 Daily FDD Talk Posts

WaveMAX Laundry Franchise

The Goddard School Franchise

PJ’s Coffee of New Orleans Franchise

SPENGA Franchise

Jamba Franchise

Screenmobile Franchise

Papa Murphy’s Franchise

Pure Barre Franchise

Schlotzsky’s Franchise

Assisting Hands Home Care Franchise

Wireless Zone Franchise

All Dry Services Franchise

ZIPS Dry Cleaners Franchise

Domino’s Pizza Franchise

Property Management Inc. Franchise

Synergy HomeCare Franchise

Fastest Labs Franchise

Units Moving and Portable Storage Franchise

Checkers & Rally’s Franchise

ShelfGenie Franchise

Freddy’s Frozen Custard & Steakburgers Franchise

Mr. Electric Franchise

KFC Franchise

Real Property Management Franchise

Dunkin’ Franchise

RockBox Fitness Franchise

Jimmy John’s Franchise

Five Star Painting Franchise

Noodles & Company Franchise

Relax the Back Franchise

MOOYAH Franchise

Senior Helpers Franchise

Slim Chickens Franchise

Salons by JC Franchise

Teriyaki Madness Franchise

Storm Guard Roofing and Construction Franchise

Baskin-Robbins Franchise

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Salon Suites Franchises

Best Property Management Franchises

Best Laboratory Services Franchises

Best Staffing/Recruiting Franchises

Best Real Estate Franchises

Most Profitable Franchises

Top Low Cost Franchises

Starting a Business During a Recession

Franchise Chatter uses affiliate links for Franchise Help and the Franchise Brokers Association.

Franchise Chatter © 2022