factual

Is there a renewal fee for a Carbones Pizzeria franchise?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

The contract term for the initial franchise agreements is 10 years commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed. During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years. There were no initial and renewal franchise fees in the year ended October 31, 2024.

Source: Item 22 — CONTRACTS (FDD page 30)

What This Means (2025 FDD)

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, when the initial franchise agreement expires, franchisees have the option to renew their agreement by paying an additional franchise fee. The initial franchise agreement lasts for 10 years, starting either when the restaurant opens or twelve months after signing the agreement, whichever comes first. A renewed Carbones Pizzeria franchise agreement also has a term of 10 years.

It is important to note that while the FDD mentions the possibility of a renewal fee, it does not specify the amount of this fee. A prospective franchisee should inquire about the specific amount of the renewal fee, as it can significantly impact the long-term financial viability of the franchise. Understanding the renewal fee structure is crucial for financial planning and assessing the overall value of the franchise opportunity.

Furthermore, the document states that there were no initial and renewal franchise fees in the year ended October 31, 2024. This does not mean that the renewal fee is waived for all franchisees, but rather that no such fees were collected during that specific accounting period. A potential franchisee should confirm the current renewal fee amount and payment terms with Carbones Pizzeria to get an accurate understanding of the costs associated with renewing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.