Does the 'Restricted Area' for a Carbones Pizzeria franchise include the Franchisee Territory?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
d. Restricted Area. The term "Restricted Area" means the Franchisee Territory, a radius of 25 miles from the Franchisee Territory and a radius of 5 miles from any other restaurant or other facility operated under the Names and Marks.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the Restricted Area does include the Franchisee Territory. The FDD defines the Restricted Area as the Franchisee Territory itself, plus a 25-mile radius from the Franchisee Territory, and a 5-mile radius from any other restaurant operating under the Carbones Pizzeria name.
This definition of the Restricted Area has significant implications for a Carbones Pizzeria franchisee, particularly concerning the covenant not to compete. After the termination or assignment of the Franchise Agreement, the franchisee is restricted from operating or being involved with a competing business within the Restricted Area for a period of two years. This restriction extends not only to the franchisee's territory but also to the surrounding areas, limiting the franchisee's options if they decide to leave the Carbones Pizzeria system.
The broad definition of the Restricted Area, including the franchisee's territory and the additional buffer zones, is fairly typical in the franchise industry. Franchisors use these restrictions to protect their brand and prevent former franchisees from using the franchisor's trade secrets and knowledge to compete unfairly. Prospective franchisees should carefully consider the extent of these restrictions and how they might impact their future business opportunities before investing in a Carbones Pizzeria franchise.