Does Carbones Pizzeria have an obligation to indemnify a franchisee for their use of copyrighted items?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, in the conduct of Franchisee's business, agrees to use only the name "Carbone's Pizzeria". Franchisee shall identify Franchisee's Restaurant as a member
of the Carbone's franchise system. Franchisee agrees that Franchisee will not include any of the Names and Marks in its corporate name nor make any use, direct or indirect, of the names "Carbone's Pizzeria", "Carbone's Pizza" or any other Name and Mark in connection with any other business, that Franchisee will not authorize or attempt to authorize the use of any of the foregoing in any other area and that Franchisee will not permit any other party to use any of the foregoing.
We do not know of any patent or copyright infringement that could materially affect your use of any items in which we claim copyright protection.
If it becomes advisable at any time in our sole discretion we can modify or discontinue the use of any name or mark and/or require the use of one or more additional or substitute names or
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 22–23)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria does not express a clear obligation to indemnify franchisees against copyright infringement suits. However, the document does address the use of the Carbone's Pizzeria name and trademarks. Franchisees are required to use only the name "Carbone's Pizzeria" for their restaurant and identify it as part of the Carbone's franchise system. They cannot include the names and marks in their corporate name or use them in connection with any other business.
Carbones Pizzeria states that it does not know of any patent or copyright infringement that could materially affect a franchisee's use of items for which they claim copyright protection. However, Carbones Pizzeria does not explicitly state that they will protect their recipes. The franchisee must adhere to specific guidelines regarding the use and protection of Carbones Pizzeria's recipes and proprietary information. Franchisees are permitted to disclose recipes only to their employees as necessary for restaurant operation and must keep recipes locked in a secure container. They cannot alter recipes without consent or reveal them to unauthorized individuals.
While Carbones Pizzeria grants franchisees the right to operate under their trademarks, they also retain the right to modify or discontinue the use of any name or mark, requiring franchisees to comply with any changes at their own expense. This could potentially lead to additional costs for the franchisee if changes are mandated. Prospective franchisees should seek clarification from Carbones Pizzeria regarding their policies on trademark and copyright protection, as well as any potential indemnification in case of infringement claims, to fully understand their rights and responsibilities.