When is the advertising fee for Carbones Pizzeria payable?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6. OTHER FEES
| (Column 1) Type of Fee1 | (Column 2) Amount | (Column 3) Due Date | (Column 4) Remarks |
|---|---|---|---|
| Royalty | 4% of Gross Sales on the initial $1,000,000 in Gross Sales per year, 3% of Gross Sales on the next $1,000,000 per year and 2% of Gross Sales on any additional Gross Sales over $2,000,000 per year. | Payable monthly on 10th day following the month covered | Gross Sales includes all revenues from the operation of the Restaurant including any delivery or off premises sales. Gross Sales do not include sales tax or use tax, non-food vending machine sales, revenue from alcohol sales, and discounts. |
| Advertising | 1% of total Gross Sales up to $2,000,000 per year. No additional fee for Gross Sales over $2,000,000 in that year. | Payable monthly on 10th day following the month covered | |
| Late Fee | 1.5% per month from date due, not to exceed the highest rate of interest allowed by law. | Upon demand | This fee is imposed by us if you do not pay amounts you owe |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the advertising fee is payable monthly on the 10th day following the month covered. The advertising fee is 1% of total Gross Sales up to $2,000,000 per year. There is no additional advertising fee for Gross Sales over $2,000,000 in that year.
This means that a Carbones Pizzeria franchisee must calculate their gross sales for each month and remit 1% of that amount to Carbones Pizzeria by the 10th of the following month. For example, sales from January are due by February 10th. This advertising fee contributes to the overall marketing and promotion efforts of the Carbones Pizzeria brand.
It is important to note that the advertising fee is based on gross sales, which includes all revenues from the operation of the restaurant, including delivery or off-premises sales. However, gross sales do not include sales tax or use tax, non-food vending machine sales, revenue from alcohol sales, and discounts. Franchisees should maintain accurate records of their gross sales to ensure accurate calculation and timely payment of the advertising fee.