Does Carbones Pizzeria have an option to purchase a franchisee's business upon termination or expiration?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. Franchisor’s right of first | Section 13(a) | We can match any offer for your business | |
| refusal to acquire franchisee’s business | |||
| o. Franchisor’s option to purchase franchisee’s business | Section 16 | We have right to purchase your inventory and merchandise bearing the Marks upon termination or expiration without renewal of yourfranchise. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria does retain the right to purchase a franchisee's business in certain circumstances. Specifically, upon termination or expiration without renewal of the franchise, Carbones Pizzeria has the option to purchase the franchisee's inventory and merchandise that bears the Carbones Pizzeria trademarks.
This provision in the Franchise Agreement means that if a franchisee's agreement is terminated, or if the franchisee chooses not to renew the agreement at the end of its term, Carbones Pizzeria has the right to buy the franchisee's remaining inventory and branded merchandise. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its brand and ensure consistent quality and presentation across all locations, even those that are no longer operating as franchises.
For a prospective franchisee, this means that they may not be able to simply sell off their remaining inventory to recoup costs if they leave the Carbones Pizzeria system. Instead, they will likely be required to sell it back to Carbones Pizzeria at a price determined by the agreement. Franchisees should carefully review Section 16 of the Franchise Agreement, as referenced in Item 17, to understand how the purchase price for inventory and merchandise will be calculated upon termination or expiration of the franchise agreement.