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Does the Carbones Pizzeria agreement define 'Competing Business' in this section?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

The following definitions shall apply to this Agreement:

  • a. Competing Business. The term "Competing Business" means an eat-in, or take-out, or combination eat-in/take out restaurant of any other facility that serves pizza.

Source: Item 23 — RECEIPTS (FDD pages 30–116)

What This Means (2025 FDD)

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the agreement does define "Competing Business". The agreement defines a "Competing Business" as any eat-in, take-out, or combination eat-in/take-out restaurant or other facility that serves pizza. This definition is important because it clarifies the scope of the non-compete clauses within the franchise agreement.

This definition is relevant to the section that discusses the covenant not to compete. During the term of the agreement, franchisees are prohibited from operating, owning, managing, or being employed by or consulting with any Competing Business, other than one operated under a valid franchise agreement with Carbones Pizzeria. This restriction also applies to any business or venture that grants franchises or licenses for the operation of a Competing Business. Franchisees are also prohibited from diverting or attempting to divert any customer or potential customer to any competitor of the Carbone System.

Following the termination or assignment of the agreement, the franchisee is restricted for two years from being involved with any Competing Business within the Restricted Area, which includes the Franchisee Territory, a 25-mile radius from the Franchisee Territory, and a 5-mile radius from any other restaurant or facility operated under the Carbones Pizzeria brand. This post-term non-compete restriction ensures that former franchisees do not use Carbones Pizzeria's trade secrets and training to unfairly compete against the franchisor or its franchisees within a specific geographic area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.