What form must the general release from the Carbones Pizzeria franchisee take during a transfer?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
nably withhold consent to the Transfer of Franchisee's interest, but if any of the following conditions are not satisfied (without particular limitation to the following list) Franchisor shall be deemed to have reasonable grounds for withholding such consent:
- (1) Franchisor must be satisfied that the prospective purchaser has sufficient business qualifications and will comply with Franchisor's then current training requirements;
- (2) The prospective purchaser must execute such agreements as are being required of Franchisor's new franchisees at the time of the Transfer and the Franchisee must execute a general release in th
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 wishes to transfer their franchise, they must execute a general release in a format required by Carbones Pizzeria. This requirement is part of the conditions that must be met for Carbones Pizzeria to approve the transfer.
In addition to the general release, the prospective purchaser must also execute agreements that are required of new Carbones Pizzeria franchisees at the time of the transfer. The franchisee must not be in default in the payment of any amounts owed to Carbones Pizzeria and must have paid a transfer fee of $5,000 at the time they seek consent for the transfer. Furthermore, the transferee and their employees, as required by Carbones Pizzeria, must complete the initial training program before the transfer can be finalized.
This provision ensures that Carbones Pizzeria maintains control over who enters its franchise system and that all incoming franchisees meet the current standards and obligations. The requirement of a general release protects Carbones Pizzeria from potential future claims by the outgoing franchisee, ensuring a clean break and continued smooth operation of the franchise system.