Under what conditions will Carbones Pizzeria approve a transfer of the franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
3 and 14 | Includes transfer of Franchise Agreement or assets or ownership change | | l. Franchisor's approval of transfer by franchisee | Section 13 | We have the right to approve all transfers but will not unreasonably withhold approval so long as all conditions to transfer have been satisfied | | m. Conditions for franchisor approval of transfer | Section 13(b) | New franchisee qualifies, transfer fee paid, training completed, release signed by you and current agreement signed by new franchisee. (The new agreement may provide for different fees or territory than in your agreement, but we will not require the transferee to pay us a |
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company has the right to approve all franchise transfers, but will not unreasonably withhold approval as long as all conditions are met.
Specifically, for Carbones Pizzeria to approve a transfer, the new franchisee must qualify, the transfer fee must be paid, training must be completed, and a release signed by the current franchisee. Additionally, the new franchisee must sign the current agreement. The new agreement may include different fees or territory terms than the original agreement, but the transferee will not be required to pay a new initial franchise fee.
Carbones Pizzeria also retains the right of first refusal, meaning they can match any offer made for the franchisee's business. If a franchisee dies or becomes disabled, their heirs can assume the franchise rights, provided they meet all the standard transfer requirements.