After the Carbones Pizzeria franchise is terminated or expires, what non-competition covenants apply to the franchisee?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees are subject to certain non-competition covenants if the franchise is terminated or expires. Specifically, for a period of two years after the termination or expiration of the franchise agreement, a franchisee cannot be involved in any competing business within the Franchisee Territory, within a 25-mile radius from the Franchisee Territory, or within a 5-mile radius from any other restaurant or facility operating under the Carbones Pizzeria Marks. These restrictions also apply to any business or venture that grants franchises or licenses for the operation of a competing business. A competing business is defined as an eat-in, take-out, or combination eat-in/take-out restaurant or other facility that serves pizza.

This means that after leaving the Carbones Pizzeria system, a former franchisee is significantly restricted in their ability to operate or be involved with a competing pizza business. The restrictions cover a substantial geographic area, including the franchisee's original territory and areas around other Carbones Pizzeria locations. This could limit the franchisee's options for future business ventures in the restaurant industry.

Prospective franchisees should carefully consider these non-competition terms and how they might impact their future plans if they decide to exit the Carbones Pizzeria system. It is important to fully understand the geographic scope and duration of these restrictions before entering into a franchise agreement. Franchisees may want to seek legal counsel to assess the enforceability of these covenants in their specific jurisdiction.