Does the Carbones Pizzeria franchise agreement allow for renewal or extension of the franchise term?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchise agreement allows for one renewal term of 10 years. The initial franchise term is also 10 years from the date of signing the Franchise Agreement. To renew the franchise, a franchisee must sign a new agreement, which may contain materially different terms and conditions than the original agreement.
Additionally, the franchisee must pay a renewal fee and update their restaurant to meet Carbones Pizzeria's then-current requirements for new restaurants. This means that the costs and obligations at the time of renewal could be significantly different from those of the original agreement.
Prospective franchisees should carefully consider these renewal conditions, as they could involve substantial financial investment to update the restaurant and potential changes to the franchise terms. It is important to discuss these potential changes and costs with Carbones Pizzeria before signing the initial agreement to fully understand the long-term implications of the franchise.