Can Carbones Pizzeria sell goods and services competitive with the franchisee through other distribution channels?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
You will not receive an exclusive territory.
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 retain the right to sell goods and services that compete with those offered by the franchisee through various distribution channels, both inside and outside the franchisee's territory. These channels include the Internet, catalog sales, telemarketing, and other forms of direct marketing. Moreover, Carbones Pizzeria and its affiliates can sell frozen pizzas and other frozen items to customers and resellers, such as supermarkets and convenience stores, located within the franchisee's territory.
This means that a Carbones Pizzeria franchisee could face direct competition from the franchisor itself, or from third parties authorized by the franchisor, selling similar products through alternative channels. This could potentially impact the franchisee's sales and market share within their designated territory. The franchisee will not be compensated if Carbones Pizzeria or its affiliates sell products and services to the franchisee's customers or others in or outside of the Franchise Territory, using the Carbone's Pizza or Carbone's Pizzeria name, or using any other name, through any channel of distribution.
Furthermore, the FDD states that franchisees may solicit customers outside their territory through channels like the internet and telemarketing. However, franchisees may not offer or sell products and services via the Internet. All advertising, whether traditional or online, including social media, must be approved in writing by Carbones Pizzeria before publication or distribution. This highlights the importance of understanding the competitive landscape and marketing restrictions when considering a Carbones Pizzeria franchise.