What is the process for termination of the Carbones Pizzeria franchise agreement due to a material breach?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may terminate this Agreement on the happening of any one of the following events:
- e. Material breach of the terms and conditions of this Agreement other than a failure to make payments;
Termination for the events described in item I shall occur if Franchisee fails to correct the breach within thirty (30) days after notice from Franchisor.
Upon termination of this Agreement for any reason whatsoever, all rights and privileges granted by Franchisor hereunder shall immediately terminate, and in such event, Franchisee shall immediately pay to Franchisor all moneys owed to Franchisor, regardless of when due, without offset or reduction of any kind whatsoever. Furthermore, Franchisee shall immediately cease to use, by advertising or otherwise, the names "Carbone's Pizzeria" or "Carbone's Pizza" and any and all other of the Names and Marks. Franchisee shall immediately return to Franchisor all forms, advertising matter, bulletins, procedures, recipes, the Manual and any other manuals provided to Franchisee, and not retain any copies thereof. Franchisee shall in every manner otherwise refrain from performing any act or thing that would indicate that Franchisee is a franchisee of Franchisor. Upon termination for whatever reason, Franchisor shall be free, without any obligations whatsoever to Franchisee, to resell the franchise herein upon such terms and conditions as Franchisor shall desire, and Franchisor shall receive all proceeds of such a sale.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria may terminate the franchise agreement if the franchisee materially breaches the terms and conditions of the agreement, aside from failing to make payments. If such a material breach occurs, Carbones Pizzeria will provide written notice to the franchisee.
Termination due to a material breach will occur if the franchisee does not correct the breach within thirty days after receiving the notice from Carbones Pizzeria. This means a franchisee has a 30-day cure period to resolve the issue after being notified.
Upon termination, all rights and privileges granted to the franchisee by Carbones Pizzeria immediately cease. The franchisee must immediately pay all outstanding monies owed to Carbones Pizzeria, stop using the Carbones Pizzeria name and marks, and return all manuals and materials. Carbones Pizzeria is then free to resell the franchise without any obligation to the former franchisee.