Can Carbones Pizzeria access the Restaurant's accounting and financial systems?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria reserves the right to independently access the Restaurant's accounting and financial systems and data. This includes any accounting or financial systems used or required by Carbones Pizzeria for the Carbone System. The purpose of this access is to determine Gross Sales and fees due to Carbones Pizzeria under the Franchise Agreement. The franchisee is obligated to grant Carbones Pizzeria access to all such accounting and financial systems and data.

This direct access to financial data is a significant aspect of the franchise relationship. It allows Carbones Pizzeria to monitor the financial performance of the franchise and ensure accurate reporting of Gross Sales, which directly impacts royalty payments and advertising fees. This level of oversight is common in franchising, as it protects the franchisor's revenue stream and ensures brand consistency.

Furthermore, if a franchisee fails to report Gross Sales in a timely manner, withholds access to accounting and financial systems or data, or otherwise fails to pay amounts due, Carbones Pizzeria has the right to debit the franchisee's account. The debit amount will be 110% of the Royalty fees and Advertising Contributions last paid by the franchisee. This clause underscores the importance of transparency and adherence to the financial reporting requirements outlined in the Franchise Agreement.