What happens if a Carbones Pizzeria franchisee misuses the trademark?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
| d. Termination by franchisee | None | Not applicable |
| e. Termination by franchisor without | None | Not applicable |
| cause | ||
| f. Termination by franchisor with cause | Section 15 | We may terminate only if you do one of the things described in Section 15 |
| g. "Cause" defined – curable defaults | Sections 15(e) through 15(f) | You have 30 days to cure nonpayment of fees, sanitation problems, non submission of reports and any other default not listed in Section 15 |
| h. "Cause" defined – non-curable defaults | Sections 15(a) through 15(d) | Non curable defaults include abandonment, trademark misuse and conviction of an offense directly related to the Restaurant business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, trademark misuse is a serious issue that can lead to the termination of the franchise agreement. Specifically, it is considered a non-curable default. This means that if a franchisee misuses the Carbones Pizzeria trademark, the franchisor has grounds to terminate the agreement immediately without providing an opportunity to correct the misuse.
This is a critical point for prospective franchisees to understand. Trademarks are valuable assets for any franchise system, and their proper use is essential for maintaining brand consistency and protecting the brand's reputation. Misuse can take various forms, such as using the trademark in an unauthorized manner, altering it, or using it in connection with goods or services that are not approved by Carbones Pizzeria.
Given the severity of the consequences, it is imperative that franchisees are thoroughly trained on the proper use of the Carbones Pizzeria trademarks and that they adhere strictly to the guidelines provided by the franchisor. Franchisees should seek clarification from Carbones Pizzeria if they are ever unsure about how to use the trademarks correctly to avoid any unintentional misuse that could jeopardize their franchise agreement. This also underscores the importance of carefully reviewing the franchise agreement and related documents to fully understand the obligations and responsibilities related to trademark usage.