exception

What is the exception to the transfer fee for a Carbones Pizzeria franchise?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will not be charged a Transfer Fee if the Franchise is transferred to a corporation or limited liability company that is solely owned by Franchisee.

Source: Item 23 — RECEIPTS (FDD pages 30–116)

What This Means (2025 FDD)

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee will not be charged a transfer fee of $5,000 if the franchise is transferred to a corporation or limited liability company that is solely owned by the franchisee.

This exception to the transfer fee is beneficial for Carbones Pizzeria franchisees who may want to restructure their business for legal or tax reasons without incurring additional costs. By transferring the franchise to a wholly-owned corporation or LLC, the franchisee can maintain control of the business while potentially gaining certain legal and financial advantages.

However, it's important to note that this exception only applies if the corporation or LLC is solely owned by the franchisee. If there are any other owners or shareholders, the transfer fee will still apply. This condition ensures that the franchisee retains complete control over the business even after the transfer, aligning with Carbones Pizzeria's standards for franchise ownership and operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.