Can Carbones Pizzeria sell its business to someone who operates similar businesses to the franchisee?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Carbones Pizzeria and its affiliates have the ability to sell their business to anyone, regardless of whether they operate or franchise similar businesses to the franchisee. This means that Carbones Pizzeria is not restricted from selling its business to a competitor or another entity already involved in the restaurant industry.
This clause provides Carbones Pizzeria with significant flexibility in its business dealings. For a prospective franchisee, this could mean that the brand could potentially be acquired by a company that also owns competing pizza chains or similar businesses.
While this does not directly impact the franchisee's day-to-day operations, it is important to be aware of the potential for a change in ownership and the strategic direction of Carbones Pizzeria. It is a fairly standard practice in franchising for the franchisor to retain the right to sell the business to whomever they choose.