When is the initial franchise fee for Carbones Pizzeria payable?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
corporation or other entity.
- d. Franchisee acknowledges and agrees that Franchisor's remedy at law is inadequate and that in the event of any breach or threatened breach of the provisions of this Section Franchisor shall be entitled to temporary and final injunctive relief in addition to any other relief allowed by law.
5. Franchise Fees; Royalties.
- a. Franchisee shall pay to Franchisor an initial fee of
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the initial franchise fee of $25,000 is due in full upon the execution of the Franchise Agreement. This means that a prospective franchisee must pay the entire fee when signing the agreement to become a Carbones Pizzeria franchisee.
The FDD specifies that the franchise fee is considered fully earned by Carbones Pizzeria upon signing the agreement. This has significant implications for the franchisee, as the document explicitly states that no part of the franchise fee will be refunded for any reason. Therefore, once the agreement is signed and the fee is paid, the franchisee is not entitled to a refund, regardless of any subsequent circumstances.
This policy is fairly standard in the franchise industry, as the initial fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and other startup support. However, prospective Carbones Pizzeria franchisees should carefully consider this non-refundable clause and ensure they are fully committed to the franchise before signing the agreement and paying the $25,000 fee.