Under what conditions can the Carbones Pizzeria Franchise Agreement be modified?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | new initial franchise fee). (See also “Noncompetition covenants after the franchise is terminated or expires” below.) | ||
| n. Franchisor’s right of first | Section 13(a) | We can match any offer for your business | |
| refusal to acquire franchisee’s business | |||
| o. Franchisor’s option to purchase franchisee’s business | Section 16 | We have right to purchase your inventory and merchandise bearing the Marks upon termination or expiration without renewal of yourfranchise. | |
| p. Death or disability of franchisee | Section 14 | Your heirs can assume your rights, but if they do, they must meet the transfer requirements. | |
| q. Non-competition covenants during the term of the franchise | Section 4 | No involvement in competing business anywhere during the term of the Franchise Agreement or in any business or venture that is granting franchises or licenses for the operation of a competing business. A competing business an eat-in, or take-out, or combination eat-in/take out restaurant of other facility which serves pizza. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 4 | No involvement in any competing business for 2 years in the Franchisee Territory, within a radius of 25 miles from the Franchisee Territory or a radius of 5 miles from any other restaurant or other facility operated under the Marks. Same restrictions apply to any business or venture that is granting franchises or licenses for the operation of a competing business. | |
| s. Modification of the agreement | Section 24 | No modifications without consent of all parties but manuals are subject to our unilateral change |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the Franchise Agreement can only be modified with the consent of all parties involved. Specifically, Section 24 of the Franchise Agreement addresses modifications. However, the Carbones Pizzeria manuals are subject to unilateral change by the franchisor, meaning Carbones Pizzeria can change the manuals without the franchisee's consent.
This stipulation in the Franchise Agreement means that while the core agreement is protected from unilateral changes, Carbones Pizzeria retains the flexibility to update operational procedures and standards outlined in the manuals. This is a fairly standard practice in franchising, allowing the franchisor to adapt to changing market conditions and improve the system without needing to renegotiate individual franchise agreements.
Prospective Carbones Pizzeria franchisees should carefully review Section 24 of the Franchise Agreement to fully understand the implications of this clause. While the franchisor cannot alter the fundamental terms of the agreement without consent, franchisees must be prepared to adapt to changes in operating procedures and standards as outlined in the manuals. It would be prudent to discuss with existing franchisees how Carbones Pizzeria typically handles manual updates and what impact those changes have had on their businesses.