Upon termination of the Carbones Pizzeria franchise agreement, what happens to the rights and privileges granted by the Franchisor?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement for any reason whatsoever, all rights and privileges granted by Franchisor hereunder shall immediately terminate, and in such event, Franchisee shall immediately pay to Franchisor all moneys owed to Franchisor, regardless of when due, without offset or reduction of any kind whatsoever. Furthermore, Franchisee shall immediately cease to use, by advertising or otherwise, the names "Carbone's Pizzeria" or "Carbone's Pizza" and any and all other of the Names and Marks. Franchisee shall immediately return to Franchisor all forms, advertising matter, bulletins, procedures, recipes, the Manual and any other manuals provided to Franchisee, and not retain any copies thereof. Franchisee shall in every manner otherwise refrain from performing any act or thing that would indicate that Franchisee is a franchisee of Franchisor. Upon termination for whatever reason, Franchisor shall be free, without any obligations whatsoever to Franchisee, to resell the franchise herein upon such terms and conditions as Franchisor shall desire, and Franchisor shall receive all proceeds of such a sale. Franchisor shall have the right, at the option of Franchisor, to purchase all inventory and usable merchandise identified with the Names and Marks, all of which may be repurchased by Franchisor at the fair wholesale market value thereof. Franchisee agrees that Franchisor may be irreparably harmed in a manner not readily compensated by money damages by any violation by Franchisee of the provisions of this Section, and accordingly Franchisor shall be entitled to injunctive relief from a court of competent jurisdiction to enforce the obligations of Franchisee hereunder, in addition to any other rights Franchisor may have at law or in equity under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, upon termination of the franchise agreement for any reason, all rights and privileges granted to the franchisee by Carbones Pizzeria immediately terminate. The franchisee is then obligated to pay all outstanding monies owed to Carbones Pizzeria, regardless of when they are due, without any offsets or reductions.
Furthermore, the franchisee must immediately cease using the names "Carbone's Pizzeria" or "Carbone's Pizza," along with any other names and marks associated with the franchise, in any form of advertising or otherwise. All forms, advertising materials, bulletins, procedures, recipes, manuals, and any other documents provided by Carbones Pizzeria must be returned, and the franchisee must not retain any copies. The franchisee must also refrain from any action that would suggest they are still a Carbones Pizzeria franchisee.
Carbones Pizzeria is then free to resell the franchise without any obligation to the former franchisee, under terms and conditions they deem appropriate, and will receive all proceeds from such a sale. Carbones Pizzeria has the option to repurchase all inventory and usable merchandise identified with the names and marks at fair wholesale market value. The agreement also states that any violation of these terms by the franchisee could cause irreparable harm to Carbones Pizzeria, entitling them to injunctive relief in addition to any other legal or equitable rights.