What constitutes an action by a Carbones Pizzeria franchisee that substantially impairs the goodwill associated with the franchisor's names and marks?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may terminate this Agreement on the happening of any one of the following events:
- c. Any action of Franchisee which substantially impairs the good will associated with Franchisor's Names and Marks if Franchisee has not terminated such action within twenty-four (24) hours after receipt of written notice demanding that Franchisee terminate such action and cure the default caused thereby;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchisor can terminate the franchise agreement if the franchisee takes any action that substantially impairs the goodwill associated with Carbones Pizzeria's names and marks.
However, the franchisee has an opportunity to correct the action. Carbones Pizzeria will provide the franchisee with written notice demanding that the franchisee stop the action and fix the default. If the franchisee does not stop the action within 24 hours of receiving the notice, Carbones Pizzeria can terminate the agreement.
This clause protects Carbones Pizzeria's brand reputation and trademarks. It also gives the franchisee a short window to correct any behavior that could damage the brand's image. Franchisees should be aware of this clause and ensure they understand what actions could be considered detrimental to the brand's goodwill.