When is the transfer fee for a Carbones Pizzeria franchise due?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| (Column 1) Type of Fee1 | (Column 2) Amount | (Column 3) Due Date | (Column 4) Remarks |
|---|---|---|---|
| Transfer | $5,000 | Prior to consummation of transfer | Payable when you sell your franchise or your business entity or a majority interest in said entity. No charge if franchise transferred to a corporation which you solely own. |
[Item 6: OTHER FEES]
(1) All fees are paid to us, are non-refundable, and are uniform for all new franchisees. (Franchisees who signed earlier versions of our franchise agreements may be paying lower fees in some categories.) If your state, or any governmental body in your state, charges a tax on any fee you owe to us or to our affiliates, then you must pay an additional amount equal to the amount of this tax. This does not apply to any federal or Minnesota income taxes we have to pay. For all amounts you owe to us, we have the right to collect these fees by preauthorized check draft or pre-authorized credit card charge or electronic funds transfer/direct debit and you must sign all documents we require to accomplish this payment method. An example of the Electronic Funds Transfer/Debit Authorization Form you must sign is attached to the Franchise Agreement. By the 5th of each month for the prior month you must provide us with a sales report disclosing to us your sales information for the prior month and any other information we may require. If a date due for payment is not a business day the payment due date will be the immediately following business day.
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the transfer fee is due prior to the consummation of the transfer. The transfer fee is $5,000. This fee is payable when a franchisee sells their franchise, their business entity, or a majority interest in that entity.
Notably, Carbones Pizzeria does not charge a transfer fee if the franchise is transferred to a corporation solely owned by the franchisee. This could be a beneficial option for franchisees looking to restructure their business for liability or tax purposes without incurring additional fees.
It is important to note that all fees paid to Carbones Pizzeria are non-refundable and are uniform for all new franchisees, although the FDD mentions that franchisees who signed earlier versions of the franchise agreement may be paying lower fees in some categories. If any governmental body charges a tax on any fee owed to Carbones Pizzeria, the franchisee must pay an additional amount equal to the tax. If a payment due date is not a business day, the payment due date will be the immediately following business day.