What is the geographic area called in which Carbones Pizzeria will not grant another franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
a. During the term of this Agreement, and provided that Franchisee is not in default under this Agreement, Franchisor will not grant to anyone else a Franchise to operate, and will not itself operate, a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which are located within the area described on the Rider to this Agreement (the "Franchisee Territory"). Franchisee acknowledges that the foregoing restrictions do not prevent Franchisor or its affiliates from any activity not specifically set forth in such restrictions, including:
- (1) Franchisor and its affiliates may operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the area in which the franchisor will not grant another franchise to operate a restaurant under the Carbone's Pizza or Carbone's Pizzeria name is called the "Franchisee Territory".
During the term of the agreement, provided the franchisee is not in default, Carbones Pizzeria will not grant another franchise, nor will it operate a restaurant under the Carbone's Pizza or Carbone's Pizzeria name within the Franchisee Territory. The specific area of the Franchisee Territory is described on the Rider to the Franchise Agreement.
However, the document specifies that this restriction does not prevent Carbones Pizzeria or its affiliates from engaging in activities not explicitly restricted. This includes operating similar businesses within the Franchisee Territory that do not operate under the Carbone's Pizza or Carbone's Pizzeria names, operating similar businesses outside the Franchisee Territory under any trademarks, and operating businesses inside the Franchisee Territory under any trademarks as long as they are not competitive with the franchisee's restaurant.