What is the Carbones Pizzeria franchisee's obligation regarding the Carbone System?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| ck | Equity | |||||
|---|---|---|---|---|---|---|
| Balance, October 31, 2023 | 2,500 | $ 2,500 | $ 266,117 | $ 887,390 | $ (34,556) | $ 1,121,451 |
| Net income | - | - | - | 198,426 | - | 198,426 |
| Balance, October 31, 2024 | 2,500 | $ 2,500 | $ 266,117 | $ 1,085,816 | $ (34,556) | $ 1,319,877 |
W I T N E S S E T H:
WHEREAS, Franchisor controls or is the owner of certain commercial trade names, trademarks, service marks, domain names and other commercial symbols including associated logos now or hereafter selected, used or promoted by Franchisor and licensed to Franchisee in connection with the Carbone System (as defined below) (collectively, "Names and Marks"); and
WHEREAS, Franchisor has created and developed certain skill and know-how in the sale and preparation of pizza and various other food and beverage items, including the development of unique and valuable recipes and sales procedures, business plans, standards, specifications, methods, processes, techniques, and sourcing, all of which may be changed from time to time by Franchisor (collectively, the "Carbone System") but specifically excluding any employee policies or procedures that Franchisor may make available to Franchisee for its optional use during the term of this Agreement; and
WHEREAS, Franchisee wishes, upon the terms and conditions set forth in this Agreement, to be assisted and trained by Franchisor to engage in the business of operating a restaurant selling pizza and other items under the Names and Marks (the "Franchise"), all in accordance with the Carbone System, it being understood that Franchisee recognizes the importance to Franchisor and to the public of maintaining the distinctive standards, qualities and attributes of a Carbone's Pizza Restaurant, and Franchisee is willing to maintain such standards, qualities and attributes.
NOW, THEREFORE, in consideration of the foregoing recited facts and the mutual agreements and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each party, the parties agree as follows:
1. Grant of Franchise.
- a. Franchisor grants Franchisee a Franchise to use the Carbone System to develop and operate a restaurant selling pizza and other food items under the Names and Marks during the term of this Agreement.
- b. The location of the restaurant to be operated under this Agreement is set forth on the Rider (the "Restaurant") to this Agreement, and such address shall not be changed without the prior written approval of Franchisor.
2. Term and Renewal.
- a. The initial term of this Agreement shall be for a period of ten (10) years, commencing on the date of this Agreement, unless sooner terminated as provided in this Agreement.
- b. Franchisee may, at its option, renew the Franchise granted by this Agreement for one period of ten (10) years provided Franchisee: (i) is not in violation of any of the terms of this Agreement; (ii) executes the then-current form of franchise agreement used by Franchisor at that time in connection with the sale of Franchises;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchisee is granted a franchise to use the Carbone System to develop and operate a restaurant selling pizza and other food items under the brand's Names and Marks during the term of the agreement. The Carbone System encompasses the skill and know-how in the sale and preparation of pizza and various other food and beverage items, including the development of unique and valuable recipes and sales procedures, business plans, standards, specifications, methods, processes, techniques, and sourcing. It is important to note that the Carbone System specifically excludes any employee policies or procedures that Carbones Pizzeria may make available to the franchisee for its optional use during the term of the agreement.
The franchisee acknowledges the importance of maintaining the distinctive standards, qualities, and attributes of a Carbones Pizzeria Restaurant and agrees to uphold these standards. This includes using only the recipes supplied by Carbones Pizzeria for making pizza, sandwiches, and all other items, with any deviation from these recipes considered a breach of the agreement. The franchisee must also obtain Carbones Pizzeria's prior written approval before offering or selling alcoholic beverages or any beverages that contain THC or cannabis, and adhere to Carbones Pizzeria's standards and applicable laws if approved to sell such items.
Furthermore, the franchisee must adhere to specific guidelines regarding advertising and promotion. All advertising of the Restaurant by or on behalf of the franchisee must be approved by Carbones Pizzeria before publication, and the franchisee is required to work with Carbones Pizzeria's approved design firm in creating and publishing any advertising. The franchisee is also prohibited from using any social media presence, including websites, hashtags, profiles, or accounts relating to the Franchise, to offer, promote, or sell any products or services or make use of any of the Names and Marks without Carbones Pizzeria's prior written approval. These obligations ensure the consistent application and protection of the Carbone System across all franchise locations.