Upon signing the agreement, is the Franchise Fee fully earned by Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ration or other entity.
- d. Franchisee acknowledges and agrees that Franchisor's remedy at law is inadequate and that in the event of any breach or threatened breach of the provisions of this Section Franchisor shall be entitled to temporary and final injunctive relief in addition to any other relief allowed by law.
5. Franchise Fees; Royalties.
- a. Franchisee shall pay to Franchisor an initial fee of
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchise fee is considered fully earned upon signing the agreement. The initial franchise fee is $25,000. Once the agreement is signed, Carbones Pizzeria will not refund any portion of this fee to the franchisee, regardless of the circumstances.
This means that a prospective Carbones Pizzeria franchisee should be certain about their decision before signing the franchise agreement, as the $25,000 franchise fee is non-refundable. This is a common practice in franchising, as the franchisor incurs costs from the moment the agreement is signed, such as providing initial training and support.
Given this policy, it is crucial for potential franchisees to conduct thorough due diligence, carefully review the FDD, and seek professional advice before committing to the Carbones Pizzeria franchise. Understanding that the franchise fee is immediately earned and non-refundable underscores the importance of making an informed decision.