Where in the Carbones Pizzeria Franchise Disclosure Document can I find the provisions of the franchise and related agreements?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17. RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreement attached to this disclosure document.
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, Item 17 provides a table listing important provisions of the franchise and related agreements. The FDD states that prospective franchisees should read these provisions in the agreement attached to the disclosure document.
The table outlines various aspects of the franchise relationship, including the length of the franchise term, conditions for renewal or extension, termination conditions, transfer protocols, and dispute resolution mechanisms. For instance, the initial franchise term is 10 years, with an option for one 10-year renewal term. To renew, a franchisee must sign a new agreement, which may have different terms, pay a renewal fee, and update the restaurant to meet current standards.
Carbones Pizzeria can terminate the agreement if the franchisee fails to meet obligations outlined in Section 15 of the Franchise Agreement. Curable defaults, such as nonpayment of fees or sanitation issues, have a 30-day cure period. Non-curable defaults include abandonment or trademark misuse. Upon termination or nonrenewal, the franchisee must de-identify the location and pay all outstanding amounts. The document also addresses transfer conditions, non-competition covenants, and dispute resolution processes, including mediation and arbitration in Hennepin County, Minnesota, under Minnesota law.
Item 17 also lists the sections in the Franchise Agreement that address topics such as the franchisor's right of first refusal to acquire the franchisee's business (Section 13(a)), the franchisor's option to purchase the franchisee's business (Section 16), and non-competition covenants during (Section 4) and after (Section 4) the franchise term. It is important to note that modifications to the agreement require the consent of all parties, but the manuals are subject to unilateral change by Carbones Pizzeria.