Can Carbones Pizzeria sell goods and services competitive with the restaurant under any trademarks through other distribution channels?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, Carbones Pizzeria and its affiliates retain the right to sell goods and services that are the same as or competitive with those sold by the franchised restaurant. This includes selling under any trademarks, including the Names and Marks, through other distribution channels. These distribution channels include the Internet, catalog sales, telemarketing, or other direct marketing, both inside and outside the franchisee's territory.

This means that a Carbones Pizzeria franchisee could face competition from the franchisor itself or its affiliates through online sales, catalogs, or other direct marketing methods. These sales could include the same or similar products that the franchisee sells in their restaurant. The franchisor can also sell frozen pizzas and other frozen items, whether under the Names and Marks or otherwise, to customers and resellers who may be located in the Franchisee Territory, including supermarkets and convenience stores.

For a prospective franchisee, this clause highlights a potential risk. While the franchisee is granted a specific territory, Carbones Pizzeria retains considerable freedom to operate competing sales channels. It is important to consider the potential impact of these alternative distribution methods on the franchisee's sales and profitability. A prospective franchisee should inquire about Carbones Pizzeria's plans for utilizing these other distribution channels and how they might affect the franchisee's business.