Can Carbones Pizzeria acquire similar businesses within a franchisee's territory?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchisor retains the right to acquire businesses similar to a franchisee's restaurant within the franchisee's territory. Specifically, Carbones Pizzeria and its affiliates can acquire businesses in the Franchisee Territory that are similar to the franchisee's Restaurant or sell their business whether through a sale of assets or stock to anyone, regardless whether they operate or franchise the operation of businesses similar to the franchisee's Restaurant.

This clause means that a Carbones Pizzeria franchisee could face direct competition from a business acquired by the franchisor within their own designated territory. This could significantly impact the franchisee's revenue and market share, as the franchisor-acquired business could draw customers away from the franchisee's location.

While Carbones Pizzeria agrees not to establish or grant a third party the right to establish another Carbone's Pizza or Carbone's Pizzeria restaurant within the franchisee's territory, this protection does not extend to businesses acquired by the franchisor. This distinction is crucial for potential franchisees to understand, as it represents a potential risk to their investment. Franchisees should carefully consider the implications of this clause and assess the likelihood of Carbones Pizzeria acquiring a competing business in their territory before investing in a franchise.