What is the duration of the restriction on Carbones Pizzeria granting other franchises within the Franchisee Territory?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
a. During the term of this Agreement, and provided that Franchisee is not in default under this Agreement, Franchisor will not grant to anyone else a Franchise to operate, and will not itself operate, a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which are located within the area described on the Rider to this Agreement (the "Franchisee Territory"). Franchisee acknowledges that the foregoing restrictions do not prevent Franchisor or its affiliates from any activity not specifically set forth in such restrictions, including:
- (1) Franchisor and its affiliates may 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;
- (2) Franchisor and its affiliates may operate similar or identical business outside of the Franchisee Territory under any trademarks even if the businesses compete with the Restaurant;
- (3) Franchisor and its affiliates may operate or allow others to operate businesses inside the Franchisee Territory under any trademarks, including the Names and Marks, so long as the businesses are not competitive with the Restaurant;
- (4) Franchisor and its affiliates may sell any products it or its affiliates provide to Franchisee for use in its Restaurant to any party, whether in or outside the Franchisee Territory;
- (5) Franchisor and its affiliates may sell, or grant third parties the right to sell, goods and services that are the same as or competitive with those sold by the Restaurant under any trademarks, including the Names and Marks, through other
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, during the term of the Franchise Agreement, provided the franchisee is not in default, Carbones Pizzeria will not grant another franchise to operate a restaurant under the "Carbone's Pizza" or "Carbone's Pizzeria" name within the franchisee's territory. This restriction also applies to Carbones Pizzeria itself operating a restaurant under those names within the franchisee's territory.
However, the agreement specifies several exceptions to this territorial exclusivity. Carbones Pizzeria and its affiliates are not restricted from operating similar businesses under different names, operating similar businesses outside the franchisee's territory under any trademarks, or operating businesses inside the franchisee's territory under any trademarks as long as they are not competitive with the franchisee's restaurant. They can also sell products to any party, regardless of location, and sell competitive goods and services through other distribution channels like the internet or telemarketing.
Additionally, Carbones Pizzeria and its affiliates can sell frozen pizzas and other frozen items to customers and resellers within the franchisee's territory, including supermarkets and convenience stores. They are also permitted to acquire similar businesses within the territory or sell their own businesses, even to those who may operate competing businesses. The duration of the restriction on granting other franchises is tied to the term of the Franchise Agreement, as long as the franchisee remains in compliance with the agreement.