What happens if a Carbones Pizzeria franchisee fails to open the Restaurant in a timely manner?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Franchisee shall open the Restaurant to the general public within one (1) year from the date of this Agreement. However, Franchisee may not commence operation of the Restaurant until Franchisee has satisfied all conditions set forth in this Agreement required to be satisfied by Franchisee prior to opening. If Franchisee fails to timely open the Restaurant, Franchisor may terminate this Agreement and retain all amounts Franchisee has paid to Franchisor or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee is required to open their restaurant to the general public within one year from the date of the Franchise Agreement. However, the franchisee must also satisfy all conditions outlined in the agreement before commencing operations.
If a Carbones Pizzeria franchisee fails to open the restaurant within this specified timeframe and after meeting all preconditions, Carbones Pizzeria has the right to terminate the Franchise Agreement.
In the event of termination due to the franchisee's failure to open on time, Carbones Pizzeria is entitled to retain all amounts that the franchisee has already paid to them or their affiliates. This could include initial franchise fees and other payments, which the franchisee would forfeit. This is a significant risk for prospective franchisees, highlighting the importance of careful planning and execution to ensure timely opening.