Must a Carbones Pizzeria franchisee be current on all payments owed to the franchisor to be eligible for 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 Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee must be current on all payments owed to the franchisor to be eligible for a franchise transfer. Specifically, the franchisee cannot be in default in the payment of any amounts owed to Carbones Pizzeria. This is one of several conditions that must be satisfied for the franchisor to approve a transfer.
In addition to being current on payments, the prospective purchaser must execute agreements required of new franchisees at the time of transfer, and the franchisee must execute a general release in the form required by Carbones Pizzeria. The franchisee must also pay a transfer fee of $5,000 at the time they seek the franchisor's consent for the transfer. Furthermore, the transferee and its employees, as required by Carbones Pizzeria, must complete the franchisor's initial training program before the transfer can be finalized.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee meets their standards and that all financial obligations are settled before a transfer occurs. For a prospective Carbones Pizzeria franchisee, this means ensuring all royalty fees, advertising fees, and any other outstanding amounts are paid before attempting to transfer the franchise. Failure to meet these conditions could result in the franchisor withholding consent for the transfer.