Does the agreement prevent Carbones Pizzeria from activities not specifically restricted?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the foregoing restrictions do not prevent Franchisor or its affiliates from any activity not specifically set forth in such restrictions, including:
- (1) Franchisor and its affiliates may operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names;
- (2) Franchisor and its affiliates may operate similar or identical business outside of the Franchisee Territory under any trademarks even if the businesses compete with the Restaurant;
- (3) Franchisor and its affiliates may operate or allow others to operate businesses inside the Franchisee Territory under any trademarks, including the Names and Marks, so long as the businesses are not competitive with the Restaurant;
- (4) Franchisor and its affiliates may sell any products it or its affiliates provide to Franchisee for use in its Restaurant to any party, whether in or outside the Franchisee Territory;
- (5) Franchisor and its affiliates may sell, or grant third parties the right to sell, goods and services that are the same as or competitive with those sold by the Restaurant under any trademarks, including the Names and Marks, through other
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchise agreement does not prevent the franchisor or its affiliates from engaging in activities not specifically restricted within the agreement. Specifically, Carbones Pizzeria retains the right to operate or allow others to operate similar businesses within a franchisee's territory, provided they do not use the Carbone's Pizza or Carbone's Pizzeria names. They can also operate similar businesses outside the franchisee's territory under any trademarks, even if they compete with the franchisee's restaurant.
Furthermore, Carbones Pizzeria and its affiliates can operate businesses inside the franchisee's territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria names, as long as these businesses are not competitive with the franchisee's restaurant. They also retain the right to sell products they provide to franchisees to any party, whether inside or outside the franchisee's territory. Additionally, Carbones Pizzeria can sell or grant third parties the right to sell goods and services that are the same as or competitive with those sold by the franchisee's restaurant under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria names, through other distribution channels.
This clause provides Carbones Pizzeria with significant flexibility to expand its brand and operations through various channels, even within a franchisee's territory, as long as they adhere to the specific restrictions outlined in the agreement. A prospective franchisee should carefully consider these provisions and how they might impact their business, particularly concerning potential competition from the franchisor or its affiliates.