Upon termination or expiration of a Carbones Pizzeria franchise, what obligations does the franchisee have regarding de-identification of the restaurant?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
| d. Termination by franchisee | None | Not applicable |
| e. Termination by franchisor without | None | Not applicable |
| cause | ||
| f. Termination by franchisor with cause | Section 15 | We may terminate only if you do one of the things described in Section 15 |
| g. "Cause" defined – curable defaults | Sections 15(e) through 15(f) | You have 30 days to cure nonpayment of fees, sanitation problems, non submission of reports and any other default not listed in Section 15 |
| h. "Cause" defined – non-curable defaults | Sections 15(a) through 15(d) | Non curable defaults include abandonment, trademark misuse and conviction of an offense directly related to the Restaurant business |
| i. Franchisee's obligations on termination/nonrenewal | Section 16 | Obligations include complete de identification and payment of amounts due. (See also "Noncompetition covenants after the franchise is terminated or expires" below.) |
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, upon termination or nonrenewal of the franchise agreement, franchisees have specific obligations. These obligations, as outlined in Section 16 of the Franchise Agreement, include the complete de-identification of the restaurant. This means the franchisee must remove all Carbones Pizzeria branding, signage, and any other materials that identify the location as a Carbones Pizzeria franchise.
De-identification is a standard practice in franchising to protect the brand's image and prevent customer confusion. By ensuring that a former franchise location no longer appears to be associated with the brand, Carbones Pizzeria maintains control over its brand reputation and customer experience. This is particularly important to avoid any negative associations that could arise from a poorly managed or non-compliant former franchise location.
In addition to de-identification, the franchisee is also obligated to pay any outstanding amounts due to Carbones Pizzeria. These financial obligations must be settled as part of the termination or nonrenewal process. Franchisees should carefully review Section 16 of the Franchise Agreement to fully understand all their responsibilities upon termination or expiration, including any potential costs associated with de-identification and outstanding payments.