When does the initial term of the Carbones Pizzeria franchise agreement commence?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the initial franchise term is for ten years, starting on the date the franchise agreement is signed. This means that the franchisee's rights and obligations under the agreement, such as using the Carbone System and Names and Marks, begin immediately upon signing the agreement.

For a prospective Carbones Pizzeria franchisee, this start date is significant because it triggers several important deadlines and obligations. For example, the franchisee has 120 days from the agreement date to secure an approved location for the restaurant. Additionally, the restaurant must be opened to the public within one year from the date of the agreement. Failure to meet these deadlines could result in the termination of the agreement and the loss of fees paid to Carbones Pizzeria.

Furthermore, the franchisee must pay an initial franchise fee of $25,000 upon the execution of the agreement, which is considered fully earned by Carbones Pizzeria at signing and is non-refundable. The agreement also specifies ongoing royalty payments based on a percentage of gross sales, payable monthly. Understanding the start date of the agreement is therefore crucial for managing these financial obligations and operational timelines.

At the end of the initial ten-year term, the Carbones Pizzeria franchisee has the option to renew the franchise for an additional ten-year period, provided they meet certain conditions. These conditions include not being in violation of the agreement, executing the then-current franchise agreement, paying a renewal fee of $1,500, updating the restaurant to current standards, and providing written notice of intent to renew within a specified timeframe before the initial term expires.