Does the definition of 'Competing Business' for Carbones Pizzeria include only take-out restaurants?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The following definitions shall apply to this Agreement:
- a. Competing Business. The term "Competing Business" means an eat-in, or take-out, or combination eat-in/take out restaurant of any other facility that serves pizza.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a 'Competing Business' is not limited to only take-out restaurants. The definition includes eat-in restaurants, take-out restaurants, and restaurants that offer a combination of both eat-in and take-out services. The FDD specifies that any of these types of restaurants, or any other facility, that serves pizza is considered a 'Competing Business'.
This definition has implications for a franchisee because it broadens the scope of businesses that Carbones Pizzeria would consider competitive. The franchisee's ability to operate, own, manage, or be employed by a business that serves pizza, within certain restricted areas and timeframes, is limited by the non-compete clauses in the franchise agreement.
Therefore, a prospective Carbones Pizzeria franchisee should be aware that the non-compete obligations extend beyond just take-out pizza businesses to include any establishment serving pizza, regardless of whether they offer dine-in services or not. This could potentially restrict the franchisee's future business opportunities within the defined restricted areas after the franchise agreement terminates.