After termination of the Carbones Pizzeria franchise agreement, for how long is the franchisee restricted from operating a competing business in the Restricted Area?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Franchisee acknowledges Franchisor must be protected against the potential for unfair competition by Franchisee's use of Franchisor's training, assistance and trade secrets in direct competition with Franchisor or its franchisees. Franchisee therefore agrees that it shall not:
- (1) During the term of this Agreement, either directly or indirectly: (a) operate, own, manage, or be employed by or consult with, any Competing Business other than one operated under a valid franchise agreement with Franchisor, or any business or venture that is granting franchises or licenses for the operation of a Competing Business; or (b) divert or attempt to divert any customer or potential customer to any competitor of the Carbone System.
- (2) For two (2) years following the termination or assignment of this Agreement, either directly or indirectly, operate, own, manage, be employed by, lease space to, lend money to, or consult with, any Competing Business, other than one operated under a valid franchise agreement with Franchisor, or any business or venture that is granting franchises or licenses for the operation of a Competing Business, that is located or doing business in the Restricted Area.
- b. In the event of the violation of Section 4.a.(2) by Franchisee, the period of time Franchisee shall be required to abide by the breached obligation shall be extended to a period of two (2) years after Franchisee is no longer in breach of such obligation.
- c. Franchisee further agrees that at no time shall it or any of its owners or employees, use any Confidential Information (as defined below) directly or indirectly, except as necessary for the proper operation of the Franchise pursuant to this Agreement. For the
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee is restricted from operating a competing business in the Restricted Area for two years following the termination or assignment of the Franchise Agreement. This restriction includes operating, owning, managing, being employed by, leasing space to, lending money to, or consulting with any Competing Business. A Competing Business is defined as an eat-in, take-out, or combination restaurant that serves pizza. The Restricted Area includes the Franchisee Territory, a radius of 25 miles from the Franchisee Territory, and a radius of 5 miles from any other restaurant operating under the Carbones Pizzeria name.
This non-compete clause prevents a former Carbones Pizzeria franchisee from using the franchisor's training, assistance, and trade secrets to unfairly compete with Carbones Pizzeria or its other franchisees. If a franchisee violates this clause, the restriction period will be extended to two years after the franchisee ceases the breach.
For a prospective Carbones Pizzeria franchisee, this means that after leaving the franchise system, they cannot immediately open a competing pizza restaurant or work for a competitor within the defined geographic area. This restriction is in place to protect the Carbones Pizzeria brand and its franchisees from unfair competition. Franchisees should carefully consider the implications of this non-compete agreement before entering into a franchise agreement.