What is Carbones Pizzeria prohibited from doing within a franchisee's territory?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as you are in compliance with your Franchise Agreement with us we will not establish, nor will we grant a third party the right to establish a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which is in your Franchisee Territory. Other than these limitations there are no prohibitions on us in your Franchisee Territory. For example, we and our affiliates can operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names, and to operate similar or identical business outside of your Franchisee Territory under any trademarks even if the businesses compete with your Restaurant. We and our affiliates can also operate or allow others to operate businesses or other ventures inside the Franchisee Territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria marks so long as the businesses are not competitive with your Restaurant. We and our affiliates can sell any products we or our affiliates provide to you for use in your Restaurant to any person, whether in or outside your Franchisee Territory. We and our affiliates can sell or grant third parties the right to sell goods and services competitive with those sold by your Restaurant under any trademarks, including Carbone's Pizza and Carbone's Pizzeria marks, through other distribution channels including the Internet, catalog sales, telemarketing or other direct marketing, in and outside of your Franchisee Territory. We and our affiliates can also sell frozen pizzas and other frozen items, whether under our trademarks or other trademarks, to customers and resellers who may be located in your Franchisee Territory, which includes supermarkets and convenience stores. We and our affiliates can also acquire businesses in the Franchisee Territory that are similar to your Restaurant or sell our business whether through a sale of assets or stock to anyone, regardless whether they operate or franchise the operation of businesses similar to your Restaurant.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, Carbones Pizzeria is restricted from establishing, or granting a third party the right to establish, a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name within a franchisee's designated territory, provided the franchisee remains in compliance with their Franchise Agreement. This means that while the franchisee operates their Carbones Pizzeria location in good standing, the franchisor will not directly compete by opening another corporate-owned location or allow another franchisee to open a competing Carbones Pizzeria restaurant within the defined territory. This provides a degree of territorial protection for the franchisee. However, this protection is not absolute.
Despite this limited protection, Carbones Pizzeria retains significant freedom to operate and compete within the franchisee's territory. Carbones Pizzeria and its affiliates can operate similar businesses under different names, sell products to anyone in or outside the territory, and sell competitive goods and services through alternative distribution channels like the Internet or telemarketing. They can also sell frozen pizzas to supermarkets and convenience stores within the territory. Furthermore, Carbones Pizzeria can acquire similar businesses within the territory or sell their own business to anyone, even if they operate competing businesses.
This lack of exclusivity means a Carbones Pizzeria franchisee could face competition from the franchisor itself or other businesses operating under different brands or through different channels within their territory. The franchisee's territory is generally a 5-mile radius around their restaurant, but it can be smaller in densely populated areas. The specific boundaries are negotiated and outlined in the Franchise Agreement. Prospective franchisees should carefully consider the potential for competition and the limited territorial protection when evaluating a Carbones Pizzeria franchise.