Does a Carbones Pizzeria franchisee have to pay an additional franchise fee to renew the franchise agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The contract term for the initial franchise agreements is 10 years commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed. During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years. There were no initial and renewal franchise fees in the year ended October 31, 2024.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, when the initial franchise agreement expires, the franchisee may have to pay an additional franchise fee to renew the agreement. The initial franchise agreement lasts for 10 years, commencing either when the restaurant opens or twelve months after the franchise agreement is signed. The renewal agreement also has a contract term of 10 years.
This means that renewing a Carbones Pizzeria franchise is not automatic and may involve additional costs. The FDD indicates that there were no initial and renewal franchise fees in the year ended October 31, 2024, but this does not guarantee that renewal fees will be waived in the future.
A prospective franchisee should clarify with Carbones Pizzeria the specific amount and conditions for any renewal franchise fees to fully understand the financial implications of extending the franchise agreement beyond the initial term.