Does a Carbones Pizzeria franchisee receive an exclusive territory?
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.
If you offer pizza delivery services, you may deliver in your franchise territory and outside of it so long as you are not delivering into the franchisee territory of any other Carbone's Pizza franchisee. These deliveries are on a non-exclusive basis. If we grant a franchise that includes an area that you were delivering into, you can no longer deliver into that area.
Customers
Except as discussed above, we do not restrict the customers you may serve, and you generally may solicit customers outside your territory, including through channels of distribution such as the Internet, telemarketing or other direct marketing sales. However, you may not offer or sell products and services via the Internet (whether inside or outside your Franchisee Territory). In addition, all of your advertising must be approved by us in writing before you publish or distribute such marketing materials, whether it is traditional advertising or advertising over the Internet, including any social media advertising. We and our affiliates have the right to sell products and services to your customers and to others in and outside your Franchise Territory, using the Carbone's Pizza or Carbone's Pizzeria name, or using any other name, through any channel of distribution, including the Internet, catalog sales, telemarketing, or other direct marketing, and may do so in your Franchisee Territory without any compensation to you.
Options, Rights of First Refusal, or Similar Rights
You will not receive any options, rights of first refusal, or similar rights to additional franchises.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While a franchisee is granted a 'Franchisee Territory,' generally a 5-mile radius around their restaurant (though it may be smaller in densely populated areas), this territory is subject to several limitations. The franchisor retains the right to operate or franchise similar businesses under different names within the franchisee's territory and can sell products through other distribution channels, including the internet, even within the franchisee's territory. Territories granted to franchisees may also overlap.
This lack of exclusivity means that a Carbones Pizzeria franchisee could face direct competition from other Carbones Pizzeria restaurants, outlets owned by the franchisor, or other brands controlled by the franchisor. The franchisor and its affiliates can also sell products that compete with the franchisee's offerings through various channels, such as online sales or supermarkets, within the franchisee's territory, without compensating the franchisee.
Despite the non-exclusive nature of the territory, Carbones Pizzeria does provide some limited protection. The franchisor will not establish, nor grant a third party the right to establish, a Carbone's Pizza or Carbone's Pizzeria restaurant with a physical premise inside the franchisee's territory, as long as the franchisee is in compliance with the Franchise Agreement. Additionally, franchisees may deliver outside their territory as long as they do not deliver into another Carbone's Pizza franchisee's territory. However, this delivery area is non-exclusive and can be revoked if the franchisor grants a franchise that includes an area the franchisee was previously delivering to.
Prospective franchisees should carefully consider the implications of operating without an exclusive territory. They should evaluate the potential for competition within their designated area and understand the franchisor's rights to operate or franchise competing businesses and channels of distribution. It is important to discuss these factors with the franchisor and existing franchisees to fully assess the potential impact on their business.