What is Carbones Pizzeria's right if the franchisee fails to open the restaurant on time?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Franchisee shall open the Restaurant to the general public within one (1) year from the date of this Agreement. However, Franchisee may not commence operation of the Restaurant until Franchisee has satisfied all conditions set forth in this Agreement required to be satisfied by Franchisee prior to opening. If Franchisee fails to timely open the Restaurant, Franchisor may terminate this Agreement and retain all amounts Franchisee has paid to Franchisor or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a franchisee is required to open their restaurant to the general public within one year from the date of the Franchise Agreement. However, the franchisee cannot commence operations until they have met all the conditions outlined in the agreement that must be satisfied before opening.
If the franchisee fails to open the restaurant on time, Carbones Pizzeria has the right to terminate the Franchise Agreement. Additionally, Carbones Pizzeria can retain all the amounts that the franchisee has already paid to them or their affiliates.
This clause is a significant consideration for potential franchisees. It emphasizes the importance of adhering to the timeline and fulfilling all pre-opening obligations. Failing to do so could result in the loss of the franchise and the forfeiture of all payments made to Carbones Pizzeria. Franchisees should carefully review and understand all pre-opening conditions and ensure they have a realistic plan to meet the one-year opening deadline.