Who is required to sign the Guaranty attached to the Carbones Pizzeria Franchise Agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. Franchisor’s right of first | Section 13(a) | We can match any offer for your business | |
| refusal to acquire franchisee’s business | |||
| o. Franchisor’s option to purchase franchisee’s business | Section 16 | We have right to purchase your inventory and merchandise bearing the Marks upon termination or expiration without renewal of yourfranchise. | |
| p. Death or disability of franchisee | Section 14 | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. | |
| q. Non-competition covenants during the term of the franchise | Section 4 | No involvement in competing business anywhere during the term of the Franchise Agreement or in any business or venture that is granting franchises or licenses for the operation of a competing business. A competing business an eat-in, or take-out, or combination eat-in/take out restaurant of other facility which serves pizza. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 4 | No involvement in any competing business for 2 years in the Franchisee Territory, within a radius of 25 miles from the Franchisee Territory or a radius of 5 miles from any other restaurant or other facility operated under the Marks. Same restrictions apply to any business or venture that is granting franchises or licenses for the operation of a competing business. | |
| s. Modification of the agreement | Section 24 | No modifications without consent of all parties but manuals are subject to our unilateral change | |
| t. Integration/merger clause | Section 24 | Only the terms of the Franchise Agreement are binding (subject to state law). Any other promises or representations (other than representations in this Disclosure Document) may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 17 | Except for certain disputes, all disputes must be mediated, and if not settled by mediation, are then subject to arbitration. | |
| v. Choice of forum | Section 17 | Mediation and arbitration must be in Hennepin County, Minnesota | |
| w. Choice of Law | Section 18 | Minnesota law generally applies | |
| x. Guaranty | Section 8 | All owners must sign the Guaranty attached to the Franchise Agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, all owners are required to sign the Guaranty attached to the Franchise Agreement. This requirement ensures that all individuals with an ownership stake in the franchise are personally liable for the franchise's obligations under the agreement. This is a common practice in franchising, as it provides the franchisor with added security and recourse in case of default or breach of contract.
For a prospective Carbones Pizzeria franchisee, this means that if you have partners or co-owners, each of you will need to sign the Guaranty. This legally binds each owner to uphold the terms of the Franchise Agreement. It's crucial for all owners to fully understand the implications of the Guaranty, as it can affect their personal assets and credit.
Before signing the Franchise Agreement and its Guaranty, prospective Carbones Pizzeria franchisees should carefully review the document with a qualified attorney. This will help ensure that all owners are fully aware of their rights and responsibilities under the agreement. Understanding the implications of the Guaranty is a critical step in making an informed decision about investing in a Carbones Pizzeria franchise.