What is the Carbones Pizzeria franchisee's obligation regarding updating their restaurant upon renewal?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
his 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; (iii) pays a renewal fee of One Thousand Five Hundred Dollars ($1,500) (the "Renewal Fee") at the time it provides its notice of renewal as
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement for an additional ten-year term must update their restaurant to meet all of Carbones Pizzeria's then-current requirements. This is one of the conditions that must be met to renew the franchise agreement.
In practical terms, this means that a franchisee considering renewal needs to be prepared to invest in upgrades or changes to their restaurant to comply with Carbones Pizzeria's latest standards. These updates could involve renovations, new equipment, changes to the restaurant's layout, or other modifications deemed necessary by the franchisor at the time of renewal. The franchisee is responsible for covering the costs associated with these updates.
This requirement ensures that all Carbones Pizzeria locations maintain a consistent brand image and meet current customer expectations. However, it also introduces a potential financial burden for franchisees at the time of renewal. Franchisees should carefully consider the potential costs of these updates when deciding whether to renew their franchise agreement. It would be prudent for a franchisee to communicate with the franchisor well in advance of the renewal date to understand the scope and estimated cost of any required updates.