When signing a Franchise Agreement for Carbones Pizzeria, what right regarding location does the franchisee receive?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
automatically upload this information.
ITEM 12. TERRITORY
When you sign a Franchise Agreement, you will receive the right to operate one Carbone's Pizza restaurant at the specific location we have approved. If you would like to relocate this location you must obtain our prior approval to do so. We will use our then-current location approval criteria to determine whether to approve the relocation.
Franchisee Territory
At the time you acquire the site we have approved we will grant you a territory. This territory will be an area that is generally 5 miles surrounding your Restaurant ("Franchisee Territory"). However, in heavily populated areas this area will be less than 5 miles. The criteria we use for determining the boundaries of the Franchisee Territory in your Franchise Agreement include density of population, growth trends of population, and natural boundaries. We will negotiate the ultimate size of the radius of the Franchisee Territory with you. An approved territory Map and written description will be included as an exhibit in your Franchise Agreement. Territories we grant to franchisees may overlap, but we will not approve anyone opening a Carbone's Pizza restaurant, or relocating a restaurant, the physical premises of which will be in your Franchisee Territory.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, when signing a Franchise Agreement, a franchisee receives the right to operate one Carbone's Pizza restaurant at a specific location that Carbones Pizzeria has approved. If a franchisee wants to relocate, they must get Carbones Pizzeria's approval, which will be based on their then-current location approval criteria.
At the time the site is acquired, Carbones Pizzeria will grant the franchisee a territory, generally an area 5 miles surrounding the restaurant. However, in heavily populated areas, this territory may be less than 5 miles. The criteria Carbones Pizzeria uses for determining the boundaries of the Franchisee Territory include density of population, growth trends of population, and natural boundaries. The ultimate size of the radius of the Franchisee Territory will be negotiated with the franchisee. An approved territory map and written description will be included as an exhibit in the Franchise Agreement.
Although territories granted to franchisees may overlap, Carbones Pizzeria will not approve anyone opening a Carbone's Pizza restaurant, or relocating a restaurant, if the physical premises will be in the franchisee's territory. However, the franchisee will not receive an exclusive territory and may face competition from other Carbone's Pizza franchisees, from outlets that Carbones Pizzeria owns, or from other channels of distribution or competitive brands that they control.