What is the Carbones Pizzeria franchisee's obligation regarding outstanding payments before a transfer?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
for withholding such consent:
- (1) Franchisor must be satisfied that the prospective purchaser has sufficient business qualifications and will comply with Franchisor's then current training requirements;
- (2) The prospective purcha
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee must not be in default in the payment of any amounts owed to Carbones Pizzeria to be eligible for a transfer. Additionally, the franchisee must pay a transfer fee of $5,000 to Carbones Pizzeria at the time it seeks Carbones Pizzeria's consent to the transfer.
This means that if a Carbones Pizzeria franchisee wants to sell their franchise to someone else, they need to ensure that all outstanding payments, such as royalties, advertising fees, or any other debts owed to Carbones Pizzeria, are fully paid up. Failure to do so will prevent the franchisee from transferring the franchise to a new owner.
This condition protects Carbones Pizzeria by ensuring that it receives all outstanding payments before a franchise unit changes ownership. It also provides clarity for potential buyers, as they know the franchise being transferred is financially clear of prior obligations to Carbones Pizzeria. Franchisees should maintain meticulous records of their payments and accounts with Carbones Pizzeria to avoid any disputes or delays when they decide to transfer their franchise.