Is non-submission of reports considered a curable default for a Carbones Pizzeria franchisee?
Carbones_Pizzeria Franchise · 2025 FDDAnswer 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, the non-submission of reports is considered a curable default. This means that if a franchisee fails to submit required reports, Carbones Pizzeria can initiate termination proceedings, but the franchisee has an opportunity to correct the issue and prevent termination.
Specifically, the franchisee has 30 days to cure the non-submission of reports after receiving notice from Carbones Pizzeria. This cure period allows the franchisee to rectify the situation by submitting the overdue reports within the given timeframe. If the franchisee submits the reports within 30 days, the termination proceedings will be halted, and the franchise agreement will remain in effect.
It is important for prospective Carbones Pizzeria franchisees to understand the distinction between curable and non-curable defaults. Non-curable defaults, such as abandonment or trademark misuse, typically lead to immediate termination without an opportunity to cure. The fact that non-submission of reports is a curable default provides some protection to the franchisee, allowing them to correct the issue and maintain their franchise agreement. However, franchisees should prioritize timely submission of all required reports to avoid any potential default situations and maintain a positive relationship with Carbones Pizzeria.