Under the Carbones Pizzeria Guaranty, what is the definition of 'Franchisor'?
Carbones_Pizzeria Franchise · 2025 FDDAnswer 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 the 2025 Carbones Pizzeria Franchise Disclosure Document, the Guaranty defines 'Franchisor' as M & T Pizza Incorporated. This definition is relevant within the context of the Guaranty agreement, which is attached to the Franchise Agreement.
The Guaranty ensures that a third party (the guarantor) will cover the franchisee's financial and performance obligations to Carbones Pizzeria. This includes the payment of all costs and fees owed to the franchisor or its affiliates, as well as the franchisee's adherence to all agreements, manuals, and operating procedures within the Carbones Pizzeria business system.
For a prospective Carbones Pizzeria franchisee, this means that if a guarantor is involved, they are guaranteeing the franchisee's obligations specifically to M & T Pizza Incorporated, as the franchisor. The guarantor's obligations extend to all agreements between the franchisee and Carbones Pizzeria, ensuring that the franchisor has recourse beyond the franchisee in case of default. This arrangement provides Carbones Pizzeria with an additional layer of financial security and operational compliance.