What happens when the Carbones Pizzeria franchise agreement expires?
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 Carbones Pizzeria's 2025 Franchise Disclosure Document, the initial franchise agreement lasts for 10 years, starting either when the restaurant opens or 12 months after signing the agreement, whichever comes first. During this time, franchisees can 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.
This means that a Carbones Pizzeria franchisee needs to consider the cost and benefits of renewing the franchise agreement at the end of the initial 10-year term. They will need to evaluate whether continuing under the Carbones Pizzeria brand is beneficial for their business, considering factors like brand recognition, ongoing support, and the cost of the renewal fee.