What section of the Carbones Pizzeria Franchise Agreement defines the length of the franchise term?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
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, the length of the franchise term is defined in Section 2 of the Franchise Agreement. The standard term for a Carbones Pizzeria franchise is 10 years from the date of signing the Franchise Agreement.
Upon completion of the initial 10-year term, a franchisee has the option to renew the agreement for one additional term of 10 years. However, this renewal is not automatic and is subject to certain conditions.
To renew their Carbones Pizzeria franchise, a franchisee must sign a new agreement, which may include terms and conditions that differ significantly from the original Franchise Agreement. They must also pay a renewal fee and update their restaurant to meet the then-current requirements for new Carbones Pizzeria restaurants. This means that franchisees need to be prepared for potential costs associated with upgrades and changes to comply with the latest brand standards if they choose to renew.