When does the initial franchise agreement term for Carbones Pizzeria begin?
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. There were no initial and renewal franchise fees in the year ended October 31, 2024.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the initial franchise agreement has a term of 10 years. The term commences on the earlier of two dates: when the restaurant opens, or twelve months following the date the franchise agreement was signed. This means a franchisee has a limited time to open their Carbones Pizzeria location once the agreement is signed, or the term will begin regardless.
During the 10-year term, the franchisee is permitted to use the Carbones Pizzeria name and menu. This is a standard practice in franchising, as the franchisee is granted the right to operate under the established brand and system.
At the end of the initial franchise agreement, the franchisee has the option to renew the agreement by paying an additional franchise fee. The renewal term is also 10 years. This provides the franchisee with the opportunity to continue operating their Carbones Pizzeria location, assuming they meet the franchisor's requirements for renewal.