Can a Carbones Pizzeria franchisee face competition from other channels of distribution that the franchisor controls?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other Carbone's Pizza franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We and our affiliates can sell or grant third parties the right to sell goods and services competitive with those sold by your Restaurant under any trademarks, including Carbone's Pizza and Carbone's Pizzeria marks, through other distribution channels including the Internet, catalog sales, telemarketing or other direct marketing, in and outside of your Franchisee Territory. We and our affiliates can also sell frozen pizzas and other frozen items, whether under our trademarks or other trademarks, to customers and resellers who may be located in your Franchisee Territory, which includes supermarkets and convenience stores.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee can face competition from other channels of distribution that Carbones Pizzeria controls. Specifically, Carbones Pizzeria and its affiliates retain the right to sell goods and services competitive with those sold by the franchisee's restaurant under any trademarks, including the Carbone's Pizza and Carbone's Pizzeria marks, through various distribution channels. These channels include the Internet, catalog sales, telemarketing, or other direct marketing, both inside and outside the franchisee's territory.
This means that even within a franchisee's designated territory, Carbones Pizzeria can operate or allow others to operate businesses that compete with the franchisee's restaurant through alternative distribution methods. This could include online ordering and delivery services, direct mail campaigns, or telephone-based sales, potentially diverting customers away from the brick-and-mortar franchise location.
Furthermore, Carbones Pizzeria and its affiliates can sell frozen pizzas and other frozen items, whether under their trademarks or other trademarks, to customers and resellers located within the franchisee's territory, including supermarkets and convenience stores. This introduces another layer of competition, as customers may opt to purchase these items from local stores rather than ordering from the franchisee's restaurant.
Prospective franchisees should carefully consider the implications of these competitive channels and how they might impact their restaurant's sales and profitability. It is important to understand Carbones Pizzeria's strategy for managing these different distribution channels and how they will support franchisees in maintaining a competitive edge in their local market.