factual

Under the Carbones Pizzeria Guaranty, what is the definition of 'Franchisee'?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

IN CONSIDERATION of the [INSERT ONE/DELETE REMAINING ONE] [grant by M & T Pizza Incorporated ("Franchisor") of a Carbone's Pizza franchise to the party named as Franchisee in the Franchise Agreement (the "Franchisee") to which this Guaranty is attached (the "Franchise Agreement")] OR [consent by M & T Pizza Incorporated ("Franchisor") to the assignment of the Franchise Agreement to which this Guaranty is attached (the "Franchise Agreement") to the assignee and party named as the Franchisee in the Franchise Agreement ("Franchisee")], and for other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby guarantee (jointly and severally with one another and all other guarantors of Franchisee, whether such guaranties are entered into prior to or after the date hereof) to Franchisor and to Franchisor's successors and assigns: (a) the payment of all costs and fees required to be paid to Franchisor or its affiliates by Franchisee, whether such costs and fees are provided for in the Franchise Agreement or under any other agreement between Franchisee and Franchisor or an affiliate of Franchisor, and (b) the performance by Franchisee of all its obligations under all such agreements and under all manuals and operating procedures of Franchisor's business system. The undersigned further specifically agree to remain individually bound by all covenants, obligations, and commitments of Franchisee contained in the Franchise Agreement and such other agreements to the same extent as if each of the undersigned had individually been named as Franchisee in the Franchise Agreement and such other agreements, and the undersigned had individually executed the Franchise Agreement and such other agreements.

Source: Item 22 — CONTRACTS (FDD page 30)

What This Means (2025 FDD)

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the Guaranty defines 'Franchisee' in two possible scenarios, depending on whether the franchise is newly granted or being assigned. In the case of a new franchise grant, 'Franchisee' refers to the party named as the franchisee in the Franchise Agreement to which the Guaranty is attached. In the case of an assignment of an existing Franchise Agreement, 'Franchisee' refers to the assignee and party named as the Franchisee in the Franchise Agreement to which the Guaranty is attached.

In both scenarios, the Guaranty is linked directly to the Franchise Agreement. This means the individual or entity that is formally recognized as the franchisee under the terms of the agreement is the one whose obligations are being guaranteed. This distinction is important because it clarifies who is responsible for fulfilling the financial and operational commitments outlined in the Franchise Agreement.

For a prospective Carbones Pizzeria franchisee, understanding this definition is crucial because it identifies who is ultimately accountable for the franchise's performance. If the franchise is being transferred, the new franchisee (assignee) assumes these responsibilities, and the Guaranty ensures that these obligations are met. The Guaranty protects Carbones Pizzeria by ensuring that there is a party responsible for the financial and operational obligations of the franchise, whether it is a newly granted franchise or an assignment of an existing one.

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.