What is the definition of 'sole supplier' in the context of Carbones Pizzeria's franchise agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ve a single supplier or item.
We have the right to designate a single source or sources from whom you must purchase any required products and services, and we and/or our affiliates may be that single source or one or more of the sources. We and our affiliates may derive revenue from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory, products and other items from our suppliers. We and our affiliates may receive rebates from various suppliers based upon franchisee purchases from the suppliers. These rebates may be based on a flat amount or percentage of franchisee purchases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a 'sole supplier' refers to a single designated source from which franchisees must purchase specific required products and services. Carbones Pizzeria and its affiliates may act as the sole supplier or be one of the approved sources. This arrangement allows Carbones Pizzeria and its affiliates to potentially derive revenue from franchisee purchases through these designated suppliers.
Specifically, Carbones Pizzeria has sole suppliers for key ingredients and branded items. These include pizza and spaghetti sauce packets, certain seasonings, frozen doughballs, pizza sausage, and any products or items branded with Carbones Pizzeria's name or trademarks. Additionally, franchisees are required to use the sole approved design firm for creating and publishing advertising for their restaurant.
This requirement ensures uniformity and quality control across all Carbones Pizzeria franchise locations, as the franchisor dictates the source and standards of essential products and services. While this may limit a franchisee's autonomy in choosing suppliers, it is intended to maintain consistency in the brand's offerings. Prospective franchisees should be aware that a significant portion of their initial and ongoing expenses will be directed towards purchasing from these specified suppliers, with limited flexibility to seek alternative sources.