What is the term length of Carbones Pizzeria's operating lease?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ut of the ordinary course of business. The Company does not believe that these legal actions will have a material adverse effect on the Company's financial position, results of operations or cash flows.
Operating Lease
The Company has a month-to-month operating lease with a related party. Rental payments are $8,000 a month. The lease also provid
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria FDD, the company itself has a month-to-month operating lease with a related party. This lease requires rental payments of $8,000 per month. Additionally, Carbones Pizzeria is responsible for covering property taxes, maintenance, insurance, and other occupancy expenses related to the leased premises. The total rent expense for this facility for the year ended October 31, 2023, was approximately $82,000.
This information pertains to the lease held by the company, not necessarily the lease terms that a franchisee would obtain for their individual location. It's important to note that the terms of the company's lease might not reflect the conditions a new franchisee will encounter. Factors such as location, market conditions, and the franchisee's creditworthiness can significantly influence lease terms.
Prospective Carbones Pizzeria franchisees should independently investigate typical commercial lease terms in their desired location and consult with real estate professionals experienced in franchise leasing. Understanding these local market conditions is crucial for accurately projecting operating costs and ensuring the long-term financial viability of the franchise.