Does Carbones Pizzeria have the right of first refusal to acquire a franchisee's business?
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 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria does have the right of first refusal to acquire a franchisee's business. This means that if a franchisee decides to sell their Carbones Pizzeria franchise, they must first offer the business to Carbones Pizzeria, allowing the company to match any offer the franchisee has received from a third party.
This right is detailed in Section 13(a) of the Franchise Agreement. Carbones Pizzeria has the ability to step in and purchase the franchise under the same terms offered by another potential buyer. This provision enables Carbones Pizzeria to maintain control over its brand and the quality of its franchisees.
For a prospective franchisee, this means that selling the franchise may involve an extra step. Before finalizing a sale to an outside party, the franchisee must give Carbones Pizzeria the opportunity to buy the business. While this doesn't prevent a sale, it does give Carbones Pizzeria significant influence over who ultimately owns and operates the franchise. Franchisees should carefully consider this when planning their exit strategy.