What is the purpose of the standards for purchased items in Carbones Pizzeria restaurants?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ertising for your Restaurant.
All items to be purchased by you in the operation of your Restaurant, including ingredients, food stuffs, other food items, apparel, pizza boxes and other packaging, linens, flatware, supplies, furnishings, fixtures, insurance, point of sale system and other miscellaneous items must meet our standards as we may change them from time to time. Such standards typically relate to the quality and appearance of products so as to promote uniformity in all franchised restaurants. Any changes in the standards will be communicated to you. You may not deviate from the specific ingredients, or the recipes for the items you sell unless we otherwise approve those changes.
You must carry the types and amounts of insurance we specify and you must name us an additional incurred (other than the workers compensation policy), and provide us 30 days notice before any change,
cancellation or termination of any policy. You must carry the following policies and minimum amounts of coverages:
| Commercial General Liability | $1,000,000 limit per occurrence $2,000,000 aggregate | |
|---|---|---|
| Business Personal Property | Replacement cost coverage | |
| Business Motor Vehicle | $1,000,000 combined single limit of liability per occurrence | |
| Liability | $1,000,000 uninsured/underinsured motorist coverage | |
| Workers’ Compensation | Policy limits pursuant to applicable state law | |
| Umbrella/Excess Liability | $1,000,000 limit per occurrence $1,000,000 aggregate | |
| Liquor Liability | $1,000,000 limit per occurrence $2,000,000 aggregate | You and other franchisees must participate in soft drink group buying and advertising programs whereby we may enter into agreements relating to the sale of soft drink products sold by you and other franchisees in exchange for advertising support to you and other franchisees. You must participate in any group buying programs developed by us. |
You can expect that the items you purchase to meet our specifications will represent over approximately 90% of the total purchases you will make to begin operations. Once you begin operating, we expect the items you purchase that meet our specifications will represent between 70-90% of your total expenses. We do not provide material benefits to any of our franchisees based on their purchase of particular products or services or use of any particular suppliers. We also have not arranged any purchasing or distribution cooperatives among our franchisees. We do, however, attempt to negotiate purchase arrangements with suppliers for the benefit of our franchisees.
None of our officers owns any interest in any of our suppliers, other than us and our affiliates.
ITEM 9. FRANCHISEE'S OBLIGATIONS
**This table lists your principal obligations under the franchise and other agreements.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the standards for purchased items are in place to promote uniformity across all franchised restaurants. These standards apply to all items purchased for the restaurant's operation, including ingredients, food items, apparel, pizza boxes, packaging, linens, flatware, supplies, furnishings, fixtures, insurance, point of sale systems, and other miscellaneous items. The standards typically relate to the quality and appearance of products.
Carbones Pizzeria may change these standards from time to time, and any changes will be communicated to franchisees. Franchisees must adhere to specific ingredients and recipes unless changes are approved by Carbones Pizzeria. This ensures that the taste, texture, and other qualities of the products are consistent across all locations, which is in the best interest of the franchisee, other franchisees, and M & T Pizza.
Furthermore, Carbones Pizzeria may designate single-source suppliers for required products and services, including themselves or their affiliates. Carbones Pizzeria and its affiliates may receive revenue or rebates from franchisee purchases from these suppliers, which can range from $1 to $10 per case or 1-7% of the amount paid by the franchisee, depending on the product. During the fiscal year ended October 31, 2024, Carbones Pizzeria's affiliate received $159,266 in revenue from rebates, with $30,000 contributed to the Advertising Fund. Franchisees can expect that items meeting Carbones Pizzeria's specifications will represent approximately 90% of their initial purchases and 70-90% of their total expenses once operations begin.