Does the Carbones Pizzeria franchisor have the right to sell their business through a sale of stock?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Franchisor and its affiliates may acquire businesses in the Franchisee Territory that are similar to the Restaurant or sell their businesses whether through a sale of assets or stock to anyone, regardless whether they operate or franchise the operation of businesses similar to the Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchisor and its affiliates have the right to sell their business through a sale of assets or stock to anyone. This right exists regardless of whether the buyer operates or franchises businesses similar to Carbones Pizzeria.
For a prospective franchisee, this means that the ownership of the Carbones Pizzeria franchise system could change hands. The new owner might have different priorities, strategies, or requirements. This could impact the franchisee's business, potentially leading to changes in the franchise agreement, operating procedures, or brand standards.
While the FDD specifies that Carbones Pizzeria can sell its business, it does not detail the process or any specific protections for franchisees in such a scenario. It is important for potential franchisees to discuss with the franchisor what would happen to their franchise agreement and investment if the company were sold.