What financial standards must the legatees, next-of-kin, or beneficiaries meet to inherit a Carbones Pizzeria franchise after the franchisee's death?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisees is/are a natural person, upon his or her (or their) deaths, the rights of Franchisees may pass to the legatees or next-of-kin, or beneficiaries of Franchisee who (1) meet the present qualifications and financial standards required of the franchisees of the Franchisor and (2) such legatees or next-of-kin or beneficiaries agree in writing to assume the obligations of Franchisee under this Agreement and to execute and abide by the then current form of franchise agreement and sign any personal guarantees required by the Franchisor in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee dies, their rights may pass to their legatees, next-of-kin, or beneficiaries if they meet certain qualifications. Specifically, these individuals must meet the present qualifications and financial standards that Carbones Pizzeria requires of its new franchisees at the time of the inheritance.
In addition to meeting the financial standards, the legatees, next-of-kin, or beneficiaries must also agree in writing to assume all of the obligations of the deceased franchisee under the existing franchise agreement. They must also execute and abide by the then-current form of the franchise agreement, which may differ from the one the original franchisee signed.
Furthermore, these individuals must sign any personal guarantees required by Carbones Pizzeria at its sole discretion. This means that even if the original franchisee did not have to provide personal guarantees, the new owners might be required to do so, adding a layer of personal financial risk. These stipulations ensure that any successor is fully committed to and capable of maintaining the standards and obligations of a Carbones Pizzeria franchise.