Is there a renewal option for a Carbones Pizzeria franchise agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer 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 the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees have the option to renew their franchise agreement. The initial franchise agreement lasts for 10 years, starting either when the restaurant opens or 12 months after the agreement is signed. During this time, franchisees can use the Carbone's Pizzeria name and menu.
When the initial agreement expires, franchisees can renew it by paying an additional franchise fee. The renewal agreement also lasts for 10 years. This provides an opportunity for franchisees to continue operating their Carbones Pizzeria business under the same terms and conditions, subject to any updates or changes in the franchise agreement at the time of renewal.
It is important to note that the 2025 FDD states that there were no initial and renewal franchise fees in the year ended October 31, 2024. This does not mean that renewal fees are not charged, but rather that no such fees were collected during that specific period. Prospective franchisees should inquire about the current renewal fee and any other conditions or requirements for renewing their franchise agreement.