Does the Carbones Pizzeria franchisor have a right of first refusal to acquire the franchisee's business?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. Franchisor’s right of first | Section 13(a) | We can match any offer for your business | |
| refusal to acquire franchisee’s business | |||
| o. Franchisor’s option to purchase franchisee’s business | Section 16 | We have right to purchase your inventory and merchandise bearing the Marks upon termination or expiration without renewal of yourfranchise. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria retains the right of first refusal to acquire a franchisee's business. This means that if a franchisee receives an offer to purchase their Carbones Pizzeria business, they must first present that offer to the franchisor, Carbones Pizzeria, which then has the option to match the offer and acquire the business themselves.
This right is detailed in Section 13(a) of the Franchise Agreement. This provision allows Carbones Pizzeria to maintain control over the ownership and operation of its franchise locations, ensuring consistency and adherence to brand standards.
For a prospective franchisee, this means that selling their Carbones Pizzeria business may involve an additional step. They cannot simply accept the first offer they receive; they must first give Carbones Pizzeria the opportunity to buy the business. While this could potentially delay a sale, it also ensures that the franchisee is getting a fair market value for their business, as Carbones Pizzeria must match the offer.
Additionally, Carbones Pizzeria also has the option to purchase the franchisee's inventory and merchandise bearing the Marks upon termination or expiration without renewal of the franchise, according to Section 16 of the Franchise Agreement.