Where is the Franchisee Territory for a Carbones Pizzeria franchise described?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ss than one hundred eighty (180) days and not more than three hundred sixty-five (365) days prior to the expiration of the initial ten (10) year term.
- c. Franchisee shall not be obligated to pay the franchise fee described in Section 5(a) of this Agreement in the event of any such renewal, but shall pay the Renewal Fee.
3. Territory.
- a. During the term of this Agreement, and provided that Franchisee is not in default under this Agreement, Franchisor will not grant to anyone else a Franchise to operate, and will not itself operate, a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which are located within the area described on the Rider to this Agreement (the "Franchisee Territory"). Franchisee acknowledges that the foregoing restrictions do not prevent Franchisor or its affiliates from any activity not specifically set forth in such restrictions, including:
- (1) Franchisor and its affiliates may operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names;
- (2) Franchisor and its affiliates may operate similar or identical business outside of the Franchisee Territory under any trademarks even if the businesses compete with the Restaurant;
- (3) Franchisor and its affiliates may operate or allow others to operate businesses inside the Franchisee Territory under any trademarks, including the Names and Marks, so long as the businesses are not competitive with the Restaurant;
- (4) Franchisor and its affiliates may sell any products it or its affiliates provide to Franchisee for use in its Restaurant to any party, whether in or outside the Franchisee Territory;
- (5) Franchisor and its affiliates may sell, or grant third parties the right to sell, goods and services that are the same as or competitive with those sold by the Restaurant under any trademarks, including the Names and Marks, through other
- distribution channels including the Internet, catalog sales, telemarketing or other direct marketing, in and outside of the Franchisee Territory;
- (6) Franchisor and its affiliates may sell frozen pizzas and other frozen items, whether under the Names and Marks or otherwise, to customers and resellers who may be located in the Franchisee Territory, including supermarkets and convenience stores;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the specific area defining the franchisee's territory is detailed in a Rider attached to the franchise agreement. Carbones Pizzeria assures that, during the agreement's term and provided the franchisee isn't in default, it won't grant another franchise or operate a Carbone's Pizza or Carbone's Pizzeria restaurant within the franchisee's designated territory, as described in the Rider. However, this territorial protection has some limitations.
Specifically, Carbones Pizzeria and its affiliates retain the right to operate similar businesses within the franchisee's territory, as long as they don't use the Carbone's Pizza or Carbone's Pizzeria name. They can also operate similar businesses outside the territory under any trademarks, even if they compete with the franchisee's restaurant. Furthermore, Carbones Pizzeria and its affiliates can operate businesses inside the franchisee's territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria names, provided these businesses aren't competitive with the franchisee's restaurant.
Additionally, Carbones Pizzeria and its affiliates can sell products they provide to franchisees to anyone, both within and outside the franchisee's territory. They can also sell goods and services, even those that compete with the franchisee's offerings, through various distribution channels like the Internet or direct marketing, both inside and outside the territory. Moreover, Carbones Pizzeria can sell frozen pizzas and other frozen items to customers and resellers, including supermarkets and convenience stores, within the franchisee's territory. Finally, Carbones Pizzeria and its affiliates can acquire similar businesses within the franchisee's territory or sell their own businesses to anyone, regardless of whether they operate or franchise similar businesses.