What is the reason Carbones Pizzeria requires franchisees to purchase food ingredients from approved suppliers?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
CES OF PRODUCTS AND SERVICES**
Because of the unique character of Carbone's pizza, you may only purchase from our approved suppliers various items including all food ingredients in the production of pizzas. The reason for the requirement is that the recipes for these products are unique and original, and it is in your interest and the interest of other franchisees and of M & T Pizza that the taste, texture and other qualities of these products be as consistent as possible. The grant or revocation of approval for a particular supplier will be communicated directly to you. Revocation will generally only occur upon the failure of the supplier to meet our standards. If you would like us to consider approving a supplier or an alternative item that we have not approved, or for which we have not revoked our approval, you must provide us with all information we request regarding the supplier or item. We will then have 30 days from the date you provide us the information to consider the supplier. We do not make our criteria available for approving suppliers or items. We do not charge a fee for our investigation or approval. We will not consider approving a supplier or item for which we only have a single supplier or item.
We have the right to designate a single source or sources from whom you must purchase any required products and services, and we and/or our affiliates may be that single source or one or more of the sources. We and our affiliates may derive revenue from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory, products and other items from our suppliers. We and our affiliates may receive rebates from various suppliers based upon franchisee purchases from the suppliers. These rebates may be based on a flat amount or percentage of franchisee purchases. Currently, these rebates range from $1 to $10 per case purchased depending upon the item purchased to 1-7% of the amount paid by the franchisee for the product, depending on the product. Our affiliate also receives a flat amount from one supplier to our franchise system. During our fiscal year ended October 31, 2024, our affiliate received $159,266 in revenue from rebates paid to it based on franchisee purchases, of which $30,000 was contributed to our Advertising Fund. This information is taken from our affiliate's internal financial statements.
We have sole suppliers for pizza and spaghetti sauce packets, certain seasonings, frozen doughballs, pizza sausage and all products or other items that are branded with our name or trademarks. Additionally, you may only use our sole approved design firm for creating and publishing advertising 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 ot
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 brand mandates that franchisees purchase food ingredients from approved suppliers due to the unique character of Carbone's pizza. The recipes for these products are original, and Carbones Pizzeria believes that maintaining consistency in taste, texture, and other qualities is in the best interest of the franchisee, other franchisees, and M & T Pizza.
This requirement ensures that all Carbones Pizzeria locations serve products that meet the brand's standards, which helps to protect the brand's reputation and customer expectations. For a prospective franchisee, this means they will have limited flexibility in sourcing ingredients and must adhere to the approved supplier list. However, franchisees can request that Carbones Pizzeria consider approving a new supplier or alternative item by providing all necessary information. Carbones Pizzeria then has 30 days to consider the supplier, and they do not charge a fee for this investigation or approval. However, Carbones Pizzeria will not consider a supplier or item for which they only have a single supplier or item.
Carbones Pizzeria also has the right to designate a single source for required products and services, which may include themselves or their affiliates. Carbones Pizzeria and its affiliates may receive revenue or rebates from franchisee purchases from these suppliers. 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. This practice is relatively common in franchising, where franchisors often negotiate volume discounts with suppliers and may receive rebates or other incentives.
Furthermore, Carbones Pizzeria has sole suppliers for specific items like pizza and spaghetti sauce packets, certain seasonings, frozen doughballs, pizza sausage, and all products branded with their name or trademarks. Franchisees must also use the sole approved design firm for creating and publishing advertising for their restaurant. All items purchased, including ingredients, food items, apparel, and packaging, must meet Carbones Pizzeria's standards, which typically relate to the quality and appearance of products to promote uniformity across all franchised restaurants. Franchisees cannot deviate from the specific ingredients or recipes unless Carbones Pizzeria approves the changes.