Are Carbones Pizzeria's accounts receivable for royalty fees due before or after advertising fee royalties?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, accounts receivable for royalty fees from franchisees are due before advertising fee royalties. Specifically, royalty fees are due on or before the first day of each week for the sales during the preceding week. In contrast, advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week.

This means a Carbones Pizzeria franchisee must remit their general royalty fees one day before remitting advertising fees. This difference in due dates, while seemingly minor, could impact a franchisee's cash flow management. Franchisees need to be aware of these specific deadlines to avoid late fees or other penalties, as late receivables receive additional scrutiny and may be charged interest at rates up to 12% annually.

Understanding the timing of these payments is crucial for budgeting and financial planning. A prospective franchisee should ensure they have systems in place to track sales and remit payments promptly to maintain a good financial standing with Carbones Pizzeria. Paying attention to these details can help a franchisee avoid unnecessary financial strain and maintain a positive relationship with the franchisor.