What qualifications must the legatees, next-of-kin, or beneficiaries meet to inherit a Carbones Pizzeria franchise after the franchisee's death?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisees is/are a natural person, upon his or her (or their) deaths, the rights of Franchisees may pass to the legatees or next-of-kin, or beneficiaries of Franchisee who (1) meet the present qualifications and financial standards required of the franchisees of the Franchisor and (2) such legatees or next-of-kin or beneficiaries agree in writing to assume the obligations of Franchisee under this Agreement and to execute and abide by the then current form of franchise agreement and sign any personal guarantees required by the Franchisor in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee dies, their rights may pass to their legatees, next-of-kin, or beneficiaries if they meet certain qualifications. These qualifications include meeting the present financial standards and other qualifications required of franchisees at the time of inheritance.
In addition to meeting the then-current franchisee qualifications, the inheriting parties must also agree in writing to assume all obligations of the deceased franchisee under the existing franchise agreement. They must also execute and abide by the then-current form of the franchise agreement.
Furthermore, the legatees, next-of-kin, or beneficiaries may be required to sign personal guarantees as required by Carbones Pizzeria at its sole discretion. This means that the beneficiaries may have to personally guarantee the financial obligations of the franchise, adding a layer of personal financial risk.