What conditions must a Carbones Pizzeria franchisee meet to be eligible for a renewal term?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
the Names and Marks during the term of this Agreement.
- b. The location of the restaurant to be operated under this Agreement is set forth on the Rider (the "Restaurant") to this Agreement, and such address shall not be changed without the prior written approval of Franchisor.
2. Term and Renewal.
- a. The initial term of this Agreement shall be for a period of ten (10) years, commencing on the date of this Agreement, unless sooner terminated as provided in this Agreement.
- b. Franchisee may, at its option, renew the Franchise granted by this Agreement for one period of ten (10) years provided Franchisee: (i) is not in violation of any of the terms of this Agreement; (ii) executes the then-current form of franchise agreement used by Franchisor at that time in connection with the sale of Franchises; (iii) pays a renewal fee of One Thousand Five Hundred Dollars ($1,500) (the "Renewal Fee") at the time it provides its notice of renewal as discussed below; (iv) updates its Restaurant to meet all of Franchisor's then-current requirements; and (v) provides Franchisor with written notice of its intent to renew t
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for one additional term of ten years if they meet certain conditions. To be eligible for renewal, the franchisee must not be in violation of any terms of the existing franchise agreement. This means the franchisee must have consistently adhered to all operational standards, payment schedules, and other contractual obligations throughout the initial term.
Additionally, the franchisee must execute the then-current form of the franchise agreement used by Carbones Pizzeria at the time of renewal. This ensures that the franchisee agrees to any updated terms, conditions, and standards that Carbones Pizzeria has implemented since the original agreement. The franchisee is also required to pay a renewal fee of $1,500 at the time they provide their notice of renewal.
Furthermore, the franchisee must update their restaurant to meet all of Carbones Pizzeria's then-current requirements, which may involve renovations, equipment upgrades, or changes to operational procedures to align with the brand's current standards. Finally, the franchisee must provide Carbones Pizzeria with written notice of their intent to renew the franchise not less than 180 days and not more than 365 days prior to the expiration of the initial ten-year term. This timeframe allows both parties ample time to prepare for the renewal process and ensure a smooth transition into the extended term.
Notably, while the franchisee must pay a renewal fee, they are not obligated to pay the initial franchise fee again upon renewal. This can represent a significant cost savings for franchisees who choose to continue their relationship with Carbones Pizzeria.