What is the role of M & T Pizza in financing a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| The undersigned ("Franchisee") acknowledges that on or about, 202, Franchisee and M & T Pizza Incorporated ("Franchisor") entered into a Franchise Agreement ("Agreement") for the operation of a Carbone's Pizzeria franchise. |
|---|
| To enable the Franchisor to receive automatic payments pursuant to the Agreement, Franchisee authorizes ("Authorization") |
| Franchisor to withdraw funds from and otherwise initiate debit entries to Franchisee's bank account indicated below, and the |
| depository named below ("Depository"), to debit the same to such account. |
| Depository Name: |
| Branch: |
| City State and Zip: |
| Transit/ABA#: |
| Bank Account Name: |
| Bank Account Number: |
| Tax ID for Account: |
| This Authorization is to remain in full force and effect until the underlying obligations of the Agreement have been satisfied in |
| full or expressly released in writing by Franchisor. Franchisee expressly agrees that this Authorization will apply to any and all |
| depositories and bank accounts that Franchisee opens during the term of the Agreement and any renewal terms. Without limiting |
| the above, Franchisee acknowledges and agrees that if Franchisee closes any bank account, Franchisee will: |
| 1) |
| immediately notify Franchisor in writing; |
| 2) |
| open or otherwise establish another bank account; |
| 3) |
| execute and deliver to Franchisor all documents necessary for Franchisor to begin and continue making |
| withdrawals from such bank account/depository by ACH debiting or other electronic means. |
| Franchisee expressly acknowledges and agrees that this Authorization will be the only written authorization needed from |
| Franchisee in order to initiate debit entries/ACH debit originations to Franchisee's bank account(s) established with any |
| depository in the future. |
| Name of Franchisee(s): |
| Signature: Sample - Not for Execution |
| Print Name: |
| Title: |
| Date: |
Source: Item 10 — FINANCING (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, M & T Pizza Incorporated is the franchisor. M & T Pizza does not directly provide financing to franchisees. However, the agreement between the franchisee and M & T Pizza allows M & T Pizza to receive automatic payments by withdrawing funds from the franchisee's bank account. This arrangement enables M & T Pizza to collect royalties and franchise fees as outlined in the franchise agreement.
This automatic payment authorization remains in effect until the franchisee's obligations under the agreement are fully satisfied or expressly released in writing by M & T Pizza. The franchisee must provide M & T Pizza with the necessary documentation to facilitate withdrawals from any new bank accounts opened during the term of the agreement. This ensures that M & T Pizza can continue to receive payments without interruption, regardless of changes to the franchisee's banking arrangements.
While M & T Pizza facilitates payment collection through bank withdrawals, the FDD does not specify any direct financial assistance or lending programs offered by M & T Pizza to its franchisees. Prospective franchisees should inquire directly with Carbones Pizzeria about potential financing options or third-party lenders that may be available to help cover startup costs or ongoing operational expenses.