If a Carbones Pizzeria franchisee's heirs assume the franchise, must they sign a current agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
, but we will not require the transferee to pay us a |
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. Franchisor’s right of first | Section 13(a) | We can match any offer for your business | |
| refusal to acquire franchisee’s business | |||
| o. Franchisor’s option to purchase franchisee’s business | Section 16 | We have right to purchase your inventory and merchandise bearing the Marks upon termination or expiration without renewal of yourfranchise. | |
| p. Death or disability of franchisee | Section 14 | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. | |
| q. |
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, in the event of the death or disability of a franchisee, their heirs can assume the franchise rights. However, to do so, the heirs must meet the standard transfer requirements.
Referring to the table, the conditions for franchisor approval of a transfer include several key items. The new franchisee, in this case, the heir, must qualify as a franchisee, pay a transfer fee, and complete the required training. Critically, the heir must also sign the current franchise agreement.
This new agreement signed by the heir may differ from the original agreement in terms of fees or territory. This means that the heirs might be subject to different financial obligations or operational conditions than the original franchisee. It is important for prospective franchisees to understand these transfer conditions, as they could significantly impact the value and operation of the franchise if it is passed on to heirs.