What is the contract term for initial Carbones Pizzeria franchise agreements?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The contract term for the initial franchise agreements is 10 years commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed. During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the initial franchise agreement term is 10 years. This term begins either when the restaurant opens or 12 months after the franchise agreement is signed, whichever comes first. During this 10-year period, franchisees have the right to operate under the Carbones Pizzeria name and utilize its menu.
At the end of the initial term, a franchisee has the option to renew the agreement, typically by paying an additional franchise fee. If renewed, the contract term for the renewal franchise agreement is also 10 years.
This information is crucial for prospective franchisees as it outlines the duration of their commitment to the Carbones Pizzeria franchise. Understanding the initial term and renewal options allows franchisees to plan for the long-term operation of their business and assess the potential return on investment over the life of the agreement.