For a Carbones Pizzeria franchise, what is the definition of 'Transfer Fee'?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
urchaser 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 the form required by Franchisor;
- (3) Franchisee shall not be in default in the payment of any amounts owed Franchisor;
- (4) Franchisee shall have paid a transfer fee to Franchisor of Five Thousand Dollars ($5,000) (the "Transfer Fee") at the time it seeks Franchisor's consent to the Transfer; and
- (5) The transferee and its employee(s), as required by Franchisor, shall have completed Franchisor's initial training program prior to the closing of the Transfer.
- c. For the purposes of this Agreement, if Franchisee is a corporation, limited liability company or a partnership, any event which results in a cumulative change in ownership of the interests in the equity securities
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the Transfer Fee is defined within the context of transferring ownership of the franchise. Specifically, if a franchisee seeks to transfer their franchise to another party, they must pay Carbones Pizzeria a transfer fee of $5,000. This fee is due at the time the franchisee seeks the franchisor's consent for the transfer.
Several conditions must be met before Carbones Pizzeria will approve a transfer. The prospective purchaser must agree to the current franchise agreements, and the transferring franchisee must sign a general release. Additionally, the franchisee must not be in default regarding any payments owed to Carbones Pizzeria. The new transferee and their employees must also complete the initial training program before the transfer is finalized.
Furthermore, if the Carbones Pizzeria franchisee is a corporation, limited liability company, or partnership, a cumulative change in ownership exceeding 50% is also considered a transfer. This triggers the same rights for Carbones Pizzeria as any other transfer. However, a transfer fee is not charged if the franchise is transferred to a corporation or LLC solely owned by the franchisee, providing an exception for certain ownership structure changes.