Carbone's Pizzeria Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$328,600 - $908,350
Franchise Fee
$25,000
Total US Locations
34
Business Summary
M & T Pizza Incorporated offers Carbone's Pizza franchises for restaurants that sell pizza and related foods and beverages for dine-in and carry-out. Carbone's Pizza restaurants can operate as full-service, fast-casual, or express models, ranging from 1,100 to 4,000 square feet. Some locations may also offer pizza delivery, catering, food truck services, or alcoholic beverages, subject to approval.
Corporate History
M & T Pizza Incorporated was incorporated in Minnesota on November 4, 1977, and has been offering Carbone's Pizza franchises since that year. The original Carbone's Pizza concept was franchised by Carbone & Sons, Inc., which ceased its franchising activities in 1977. Carbone Pizza, Inc., an affiliate, owns the original Carbone's Pizza location, which opened in St. Paul, Minnesota, in 1954.
Financial Overview
Investment Range
$328,600 - $908,350
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$220,000
Equipment Costs (High)
$685,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Carbone's Pizza's consolidated financial statements for the fiscal year ended October 31, 2024, received an unqualified audit opinion, indicating financial health. For 2024, the company reported a net income of $198,426 and positive cash flow from operating activities. However, the balance sheet as of October 31, 2024, shows a significant amount of $519,028 owed from the sole stockholder, which is unsecured, noninterest bearing, and due on demand. Unaudited statements for the four months ended February 28, 2025, show a net loss of $28,400.
Financing Details
Carbone's Pizza does not offer direct or indirect financing. Franchisees may be provided with a list of banks for financing referrals upon request, but Carbone's Pizza does not guarantee any note, lease, or other obligation the franchisee may have to another party.
Performance Metrics
Total US Locations
34
Franchised Units
32
Corporate Units
2
Avg Square Footage
2,317
Franchising Since
1977
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Carbone's Pizza has no litigation to report in this FDD, as no litigation is required to be disclosed in Item 3.
Bankruptcy History
Carbone's Pizza has no bankruptcy history to report for itself or its management personnel, as no bankruptcy information is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Carbone's Pizza franchise, franchisees must be in good standing, sign Carbone's Pizza's then-current franchise agreement (which may have different terms, conditions, and fees than their original agreement), pay a renewal fee of $1,500, and update their restaurant to meet Carbone's Pizza's current requirements for new restaurants.
Training & Support Program
Franchisor Assistance
Before opening, Carbone's Pizza reviews and approves the franchisee's site, designates the territory, provides a prototypical design package, offers access to an operations manual (approximately 474 pages), and consults on equipment and approved suppliers. It also provides an initial training program and instructions on making pizza and related items. After opening, Carbone's Pizza makes additional training programs available, provides guidance on new menu offerings, consults on operating issues during business hours, maintains and administers the Carbone's Pizza Advertising Fund, and consults on marketing initiatives.
Initial Training Hours
156
Training Location
Twin Cities area
Ongoing Support
After opening, Carbone's Pizza offers additional training programs or refresher courses as needed, provides guidance on new menu items, and is available to consult on operating and marketing issues during normal business hours. The franchisor also maintains and administers the Carbone's Pizza Advertising Fund. Franchisees must purchase and use a required point-of-sale system, which Carbone's Pizza has independent access to for sales information.
Franchise Requirements
Ideal Candidate Profile
Carbone's Pizza strongly prefers and recommends that one of the franchisee's owners actively participate in the direct, hands-on operation of the restaurant. While not strictly prohibited, Carbone's Pizza strongly discourages any form of absentee ownership. If an owner chooses not to be hands-on, an operations manager is required to conduct on-site supervision of the restaurant's daily operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Carbone's Pizza grants franchisees a territory that is generally a 5-mile radius around their approved restaurant location. However, in heavily populated areas, this radius will be less than 5 miles. The exact boundaries are determined based on population density, population growth trends, and natural boundaries, and will be negotiated with the franchisee and included in their Franchise Agreement with an approved map and written description.
Staffing Notes
If the owner does not act as the operations manager, Carbone's Pizza requires an operations manager to conduct on-site supervision of the restaurant's daily operations. Carbone's Pizza also requires all employees to wear specified uniforms, maintain a neat and clean appearance, and provide competent, sober, and courteous service to customers.