What rights does Carbones Pizzeria retain within a franchisee's territory?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as you are in compliance with your Franchise Agreement with us we will not establish, nor will we grant a third party the right to establish a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which is in your Franchisee Territory. Other than these limitations there are no prohibitions on us in your Franchisee Territory. For example, we and our affiliates can operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names, and to operate similar or identical business outside of your Franchisee Territory under any trademarks even if the businesses compete with your Restaurant. We and our affiliates can also operate or allow others to operate businesses or other ventures inside the Franchisee Territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria marks so long as the businesses are not competitive with your Restaurant. We and our affiliates can sell any products we or our affiliates provide to you for use in your Restaurant to any person, whether in or outside your Franchisee Territory. We and our affiliates can sell or grant third parties the right to sell goods and services competitive with those sold by your Restaurant under any trademarks, including Carbone's Pizza and Carbone's Pizzeria marks, through other distribution channels including the Internet, catalog sales, telemarketing or other direct marketing, in and outside of your Franchisee Territory. We and our affiliates can also sell frozen pizzas and other frozen items, whether under our trademarks or other trademarks, to customers and resellers who may be located in your Franchisee Territory, which includes supermarkets and convenience stores. We and our affiliates can also acquire businesses in the Franchisee Territory that are similar to your Restaurant or sell our business whether through a sale of assets or stock to anyone, regardless whether they operate or franchise the operation of businesses similar to your Restaurant.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Carbones Pizzeria retains significant rights within a franchisee's territory. While Carbones Pizzeria will not establish or allow a third party to establish a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name within the franchisee's territory, there are several exceptions.
Carbones Pizzeria and its affiliates can operate similar or identical businesses within the franchisee's territory as long as they do not use the Carbone's Pizza or Carbone's Pizzeria names. They can also operate similar businesses outside the franchisee's territory under any trademarks, even if they compete with the franchisee's restaurant. Furthermore, Carbones Pizzeria and its affiliates can operate businesses within the territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria marks, as long as these businesses are not competitive with the franchisee's restaurant.
Additionally, Carbones Pizzeria and its affiliates can sell products they provide to franchisees to anyone, both inside and outside the franchisee's territory. They can also sell or grant third parties the right to sell goods and services competitive with those sold by the franchisee's restaurant through other distribution channels like the Internet, catalog sales, or telemarketing, both within and outside the territory. Carbones Pizzeria can also sell frozen pizzas and other frozen items to customers and resellers, such as supermarkets and convenience stores, within the franchisee's territory. Finally, Carbones Pizzeria can acquire similar businesses within the franchisee's territory or sell their business to anyone, regardless of whether they operate similar businesses.