How does the termination process differ for abandonment, conviction, bankruptcy, material breach, and non-payment for a Carbones Pizzeria franchise?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the termination process varies depending on the reason for termination. Specifically, if a franchisee voluntarily abandons the franchise, is convicted of an offense, declares bankruptcy or insolvency, or makes an assignment for the benefit of creditors, the termination is effective immediately upon written notice from Carbones Pizzeria. This means the franchisee's rights are immediately terminated without a chance to correct the issue.

However, if the termination is due to a material breach of the franchise agreement (excluding payment failures), the franchisee has 30 days after receiving notice from Carbones Pizzeria to correct the breach. If the franchisee rectifies the breach within this period, the agreement will not be terminated. If the breach is not corrected within the 30-day period, termination will occur.

In the case of failure to make payments such as royalties, advertising fees, or other amounts owed to Carbones Pizzeria, the franchisee has a shorter period of 10 days from the notice to cure the payment default. If the franchisee makes the required payments within this 10-day period, the agreement will not be terminated. Failure to pay within the 10 days will result in immediate termination. This tiered approach to termination notices and cure periods is relatively common in franchising, allowing franchisors to address different types of defaults with appropriate urgency.

Upon termination of the Carbone's Pizzeria franchise agreement, the franchisee must immediately cease using the Carbone's Pizzeria names and marks, return all materials, and pay all outstanding debts to Carbones Pizzeria. Carbones Pizzeria is then free to resell the franchise without any obligation to the former franchisee.