What is the definition of 'Franchisee Territory' for a Carbones Pizzeria restaurant?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
location.
Franchisee Territory
At the time you acquire the site we have approved we will grant you a territory. This territory will be an area that is generally 5 miles surrounding your Restaurant ("Franchisee Territory"). However, in heavily populated areas this area will be less than 5 miles. The criteria we use for determining the boundaries of the Franchisee Territory in your Franchise Agreement include density of population, growth trends of population, and natural boundaries. We will negotiate the ultimate size of the radius of the Franchisee Territory with you. An approved territory Map and written description will be included as an exhibit in your Franchise Agreement. Territories we grant to franchisees may overlap, but we will not approve anyone opening a Carbone's Pizza restaurant, or relocating a restaurant, the physical premises of which will be in your Franchisee Territory.
As long as you are in compliance with your Franchise Agreement with us we will not establish, nor will we grant a third party the right to establish a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which is in your Franchisee Territory. Other than these limitations there are no prohibitions on us in your Franchisee Territory. For example, we and our affiliates can operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names, and to operate similar or identical business outside of your Franchisee Territory under any trademarks even if the businesses compete with your Restaurant. We and our affiliates can also operate or allow others to operate businesses or other ventures inside the Franchisee Territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria marks so long as the businesses are not competitive with your Restaurant.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee territory is granted at the time the site is acquired and approved. Generally, this territory extends to a 5-mile radius around the restaurant. However, in densely populated areas, the territory may be less than 5 miles. The specific criteria used to determine the boundaries include population density, population growth trends, and natural boundaries. The ultimate size of the territory's radius is negotiated between Carbones Pizzeria and the franchisee, and an approved territory map and written description are included as an exhibit in the Franchise Agreement.
While territories may overlap, Carbones Pizzeria will not approve the opening or relocation of another Carbone's Pizza restaurant within a franchisee's territory. However, the franchisee does not receive an exclusive territory and may face competition from other Carbones Pizzeria franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Carbones Pizzeria.
Regarding delivery services, franchisees can deliver within and outside their territory, provided they do not deliver into another Carbone's Pizza franchisee's territory. These deliveries are on a non-exclusive basis, and if Carbones Pizzeria grants a franchise that includes an area where a franchisee was previously delivering, the franchisee must cease deliveries to that area. Carbones Pizzeria does not restrict the customers a franchisee may serve and generally allows franchisees to solicit customers outside their territory, except that franchisees may not offer or sell products and services via the Internet, whether inside or outside their Franchisee Territory.