What are the notice requirements for a Carbones Pizzeria franchisee to renew their franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
his Agreement, and such address shall not be changed without the prior written approval of Franchisor.
2. Term and Renewal.
- a. The initial term of this Agreement shall be for a period of ten (10) years, commencing on the date of this Agreement, unless sooner terminated as provided in this Agreement.
- b. Franchisee may, at its option, renew the Franchise granted by this Agreement for one period of ten (10) years provided Franchisee: (i) is not in violation of any of the terms of this Agreement; (ii) executes the then-current form of franchise agreement used by Franchisor at that time in connection with the sale of Franchises; (iii) pays a renewal fee of One Thousand Five Hundred Dollars ($1,500) (the "Renewal Fee") at the time it provides its notice of renewal as discussed below; (iv) updates its Restaurant to meet all of Franchisor's then-current requirements; and (v) provides Franchisor with written notice of its intent to renew t
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee has the option to renew their franchise agreement for one additional term of ten years, provided they meet certain conditions. To renew, the franchisee must not be in violation of any terms of the existing agreement. They are required to execute the then-current form of the franchise agreement used by Carbones Pizzeria at the time of renewal.
In addition to adhering to the franchise agreement and executing a new one, the franchisee must pay a renewal fee of $1,500 at the time they provide their notice of renewal. The franchisee is also responsible for updating their restaurant to meet all of Carbones Pizzeria's then-current requirements, which could involve renovations or upgrades to comply with the brand's latest standards.
Critically, the franchisee must provide Carbones Pizzeria with written notice of their intent to renew the franchise. This notice must be given no less than 180 days and no more than 365 days prior to the expiration of the initial ten-year term. Failing to provide notice within this window could result in the franchisee losing their option to renew the franchise. While the franchisee must pay a renewal fee, they are not obligated to pay the standard franchise fee upon renewal.