factual

If a Carbones Pizzeria franchisee has sanitation problems, how long do they have to cure this default?

Carbones_Pizzeria Franchise · 2025 FDD

Answer 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

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, a franchisee has 30 days to cure sanitation problems. This falls under 'curable defaults' as defined in Section 15(e) through 15(f) of the Franchise Agreement. Other curable defaults include nonpayment of fees and non-submission of reports.

This 30-day cure period is a critical aspect of the franchise agreement for prospective Carbones Pizzeria franchisees. It means that if the franchisor identifies a sanitation issue, the franchisee has a defined window to address and resolve the problem before Carbones Pizzeria can move to terminate the agreement. Failing to remedy the sanitation problems within this timeframe could lead to termination of the franchise agreement.

In contrast, the FDD also specifies certain 'non-curable defaults' that would lead to immediate termination. These include actions like abandonment of the business, trademark misuse, or conviction of an offense directly related to the Carbones Pizzeria restaurant business. The distinction between curable and non-curable defaults is important for franchisees to understand, as it outlines the severity and potential consequences of different types of violations of the franchise agreement.

It is important for a prospective Carbones Pizzeria franchisee to carefully review Section 15 of the Franchise Agreement to fully understand what constitutes both curable and non-curable defaults, and the specific steps required to remedy any issues within the given timeframe. Understanding these provisions is essential for maintaining a healthy relationship with Carbones Pizzeria and avoiding potential termination of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.