What is the consideration for the agreement between the Franchisor and Franchisee for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
W I T N E S S E T H:
WHEREAS, Franchisor controls or is the owner of certain commercial trade names, trademarks, service marks, domain names and other commercial symbols including associated logos now or hereafter selected, used or promoted by Franchisor and licensed to Franchisee in connection with the Carbone System (as defined below) (collectively, "Names and Marks"); and
WHEREAS, Franchisor has created and developed certain skill and know-how in the sale and preparation of pizza and various other food and beverage items, including the development of unique and valuable recipes and sales procedures, business plans, standards, specifications, methods, processes, techniques, and sourcing, all of which may be changed from time to time by Franchisor (collectively, the "Carbone System") but specifically excluding any employee policies or procedures that Franchisor may make available to Franchisee for its optional use during the term of this Agreement; and
WHEREAS, Franchisee wishes, upon the terms and conditions set forth in this Agreement, to be assisted and trained by Franchisor to engage in the business of operating a restaurant selling pizza and other items under the Names and Marks (the "Franchise"), all in accordance with the Carbone System, it being understood that Franchisee recognizes the importance to Franchisor and to the public of maintaining the distinctive standards, qualities and attributes of a Carbone's Pizza Restaurant, and Franchisee is willing to maintain such standards, qualities and attributes.
NOW, THEREFORE, in consideration of the foregoing recited facts and the mutual agreements and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each party, the parties agree as follows:
1. Grant of Franchise.
- a. Franchisor grants Franchisee a Franchise to use the Carbone System to develop and operate a restaurant selling pizza and other food items under 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.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the agreement between the franchisor and franchisee is based on several considerations. Carbones Pizzeria, as the franchisor, possesses trademarks, service marks, and trade names related to the Carbone System. They also have developed expertise in pizza preparation, recipes, and business procedures. The franchisee desires to be trained and assisted by Carbones Pizzeria to operate a restaurant under the Carbone's Pizza name, adhering to the standards and qualities of the Carbone System.
Therefore, the agreement is made considering the recited facts, mutual agreements, and covenants. Both parties acknowledge the receipt and sufficiency of this consideration. Carbones Pizzeria grants the franchisee the right to use the Carbone System to operate a restaurant under its trademarks. The restaurant's location is specified in the Rider to the agreement and cannot be changed without prior written approval from Carbones Pizzeria.
In simpler terms, the franchisee is paying for the right to use the Carbones Pizzeria brand, system, and expertise to run their own restaurant. In return, the franchisee must adhere to Carbones Pizzeria's standards and guidelines. This ensures consistency across all franchise locations and protects the brand's reputation. The initial franchise fee is $25,000, which is earned by the franchisor upon signing the agreement.