Carbones Pizzeria
Carbone's Pizzeria offers pizza and related foods under two brand names, requiring an initial investment of $328,600 to $908,350. Known for its pizzerias, it operates in the fast-casual dining industry.
Carbones Pizzeria franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts. The FDD provides estimates for initial start-up expenses or 'working capital' but notes that these figures are estimates and do not include payroll costs, which can vary significantly based on location. Additionally, specific details about the total initial investment are not provided.
What is the initial franchise fee?
The initial franchise fee is $25,000, unless you are an existing Carbone's Pizza franchisee purchasing an additional franchise, in which case this fee will be waived. [p.8]
What are the ongoing royalty and advertising fees?
The ongoing royalties and advertising fees are due on specific days: royalty fees from franchisees are due on or before the first day of each week for sales during the preceding week, while advertising fee royalties are due by Tuesday of each week for the same period. These fees may incur interest at up to 12% annually if not received on time [p.86, p.72, p.100]. Franchisees contribute to an advertising fund used for various promotional activities related to Carbone's Pizzeria [p.88, p.74].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has a term of 10 years, commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed [p.74, p.102]. You may have the option to renew the agreement for another 10-year period by paying a renewal fee of $1,500 and meeting certain conditions [p.37].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, transfers where beneficial ownership of less than 50% of the franchise does not change, or an individual transfers the franchise to an entity they own or to heirs, do not require specific approval [p.28]. However, for other transfers, it is not specified in the provided excerpts whether special approval from the franchisor is required.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You will not receive an exclusive territory [p.20]. Your Franchisee Territory is generally a 5-mile radius around your restaurant, but it may be less in densely populated areas. This territory may overlap with others, and you are not permitted to deliver into the franchise territories of other Carbone's Pizza locations [p.20, p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for franchisees and their staff at locations designated by the franchisor [p.41]. This training is required before opening a restaurant and costs must be paid prior to attendance [p.41]. Additionally, the franchisor may require additional training on changes to the system at no direct cost to the franchisee but with all related expenses borne by the franchisee [p.41]. There are also group buying and advertising programs that franchisees must participate in [p.13].
How many franchised outlets are there, and how many have closed or been terminated?
According to Exhibit E attached to the disclosure document, as of October 31, 2024, there are a total of [number not specified in excerpts] franchised outlets. Additionally, Exhibit F indicates that there are 2 franchisees who have been terminated, canceled, not renewed, or otherwise voluntarily ceased to do business during the 12-month period ended October 31, 2024, or who have not communicated with the company within 10 weeks of the issuance date of this Disclosure Document.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one. However, they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets, and they do not authorize their employees or representatives to make such representations [p.27]. Financial performance information can be included in the disclosure document only if there is a reasonable basis for it and if you request written substantiation upon reasonable request [p.27] [p.19].
What am I restricted to selling, and where must I buy supplies?
You are required to offer all menu items specified by the franchisor and must update them as directed. You cannot sell unauthorized items [p.23]. For supplies, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3]. This isn't specified in the excerpts for all types of supplies, only mentioning equipment and some items like vending machines.