Is a Carbones Pizzeria franchisee's conviction of an offense directly related to the Restaurant business considered a curable default?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
| d. Termination by franchisee | None | Not applicable |
| e. Termination by franchisor without | None | Not applicable |
| cause | ||
| f. Termination by franchisor with cause | Section 15 | We may terminate only if you do one of the things described in Section 15 |
| g. "Cause" defined – curable defaults | Sections 15(e) through 15(f) | You have 30 days to cure nonpayment of fees, sanitation problems, non submission of reports and any other default not listed in Section 15 |
| h. "Cause" defined – non-curable defaults | Sections 15(a) through 15(d) | Non curable defaults include abandonment, trademark misuse and conviction of an offense directly related to the Restaurant business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee's conviction of an offense directly related to the restaurant business is considered a non-curable default. This means that if a Carbones Pizzeria franchisee is convicted of such an offense, Carbones Pizzeria has grounds to terminate the franchise agreement immediately without providing an opportunity for the franchisee to correct the issue.
This is a significant point for prospective franchisees to consider. Conviction of an offense directly related to the restaurant business could include various criminal activities, such as food safety violations, theft, or other illegal actions that directly impact the operation or reputation of the Carbones Pizzeria franchise. The FDD does not provide specific examples of what constitutes such an offense, so it is important for a prospective franchisee to seek clarification from Carbones Pizzeria on what specific offenses would trigger this clause.
In contrast, the FDD specifies that certain other defaults are curable. These include nonpayment of fees, sanitation problems, and non-submission of reports. For these curable defaults, a Carbones Pizzeria franchisee would typically have 30 days to rectify the issue and avoid termination of the franchise agreement. The distinction between curable and non-curable defaults highlights the seriousness with which Carbones Pizzeria views offenses directly related to the restaurant business.