What section of the Carbones Pizzeria Franchise Agreement covers non-competition covenants during the term of the franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 4 | No involvement in competing business anywhere during the term of the Franchise Agreement or in any business or venture that is granting franchises or licenses for the operation of a competing business. A competing business an eat-in, or take-out, or combination eat-in/take out restaurant of other facility which serves pizza. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, Section 4 of the Franchise Agreement addresses non-competition covenants during the term of the franchise. This section prohibits franchisees from being involved in any competing business during the term of the Franchise Agreement.
A competing business is defined as an eat-in, take-out, or combination eat-in/take-out restaurant or other facility that serves pizza. This restriction applies to any business or venture that grants franchises or licenses for operating a competing business.
This means that while operating a Carbones Pizzeria franchise, a franchisee cannot own, operate, or be involved in any other pizza-related business, including franchising other pizza concepts. This is a standard practice in franchising to protect the brand and prevent franchisees from directly competing with the franchised business.