What does 'you' or 'your' refer to in the Carbones Pizzeria disclosure document?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
To simplify the language in this disclosure document, "we", "us", "our" and "M & T Pizza" means M & T Pizza Incorporated, the corporation which is offering the franchise and is sometimes called the "Franchisor." "You" or "your" means the person who or entity that buys the franchise and is sometimes called the "Franchisee." If the Franchisee is a corporation, partnership, limited liability company, or other business entity, "you" includes the franchisee's owners and each of your owners must sign a personal guaranty agreeing to comply with all provisions of the Franchise Agreement.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–7)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the terms "you" or "your" refer to the individual or entity that purchases the franchise, also known as the "Franchisee." This definition is crucial for understanding the obligations and rights outlined in the document.
For prospective Carbones Pizzeria franchisees, this means that any statement using "you" directly applies to them as the owner of the franchise. This includes requirements for operating the restaurant, adhering to standards, and complying with the Franchise Agreement. If the franchisee is a business entity such as a corporation, partnership, or LLC, the definition extends to include the owners of that entity.
Furthermore, the disclosure specifies that if the franchisee is a business entity, each of the owners must sign a personal guaranty. This guaranty ensures that the owners are personally liable for compliance with the Franchise Agreement, adding another layer of responsibility. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of non-compliance or default by the franchisee entity.