What happens when the franchise agreement expires for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The contract term for the initial franchise agreements is 10 years commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed. During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the initial franchise agreement lasts for 10 years, starting either when the restaurant opens or 12 months after the franchise agreement is signed, whichever comes first. During this time, franchisees are authorized to use the Carbones Pizzeria name and menu.
Upon expiration of the initial franchise agreement, a franchisee has the option to renew the agreement by paying an additional franchise fee. If the franchisee chooses to renew, the renewal agreement also has a term of 10 years, allowing the franchisee to continue operating under the Carbones Pizzeria brand.
It is important for prospective franchisees to consider the costs and benefits of renewing their franchise agreement. Factors to consider may include the performance of the franchise location, changes in market conditions, and the terms of the renewal agreement, including any updated fees or requirements. Franchisees should carefully evaluate their options and consult with legal and financial advisors before making a decision about renewal.