During the term of the Carbones Pizzeria franchise, can a franchisee be involved in a competing business?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 4 | No involvement in competing business anywhere during the term of the Franchise Agreement or in any business or venture that is granting franchises or licenses for the operation of a competing business. A competing business an eat-in, or take-out, or combination eat-in/take out restaurant of other facility which serves pizza. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees are restricted from involvement in any competing business during the term of their Franchise Agreement. This non-compete clause extends to any business or venture that grants franchises or licenses for the operation of a competing business. A competing business is defined as an eat-in, take-out, or combination eat-in/take-out restaurant or other facility that serves pizza.
This restriction means that while operating a Carbones Pizzeria franchise, a franchisee cannot own, operate, or have any financial interest in another pizza restaurant or a similar establishment. This also includes businesses that franchise or license competing pizza concepts. The non-compete agreement is in place for the entire duration of the Franchise Agreement.
This type of restriction is common in franchising to protect the brand and prevent franchisees from using proprietary information or resources to benefit a competing business. Prospective Carbones Pizzeria franchisees should carefully consider this restriction and ensure they are willing to commit fully to the Carbones Pizzeria system without divided interests.