When are advertising fee royalties due to Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable for royalty fees from franchisees are due on or before the first day of each week for the sales during the preceding week and accounts receivable for advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week. All receivables not received on time receive additional scrutiny from management and may be charged interest at rates up to 12% annually.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week. This means that a franchisee must calculate their sales for the previous week and remit the advertising fee royalties to Carbones Pizzeria by Tuesday of the following week.
Carbones Pizzeria scrutinizes receivables not received on time and may charge interest at rates up to 12% annually. This late fee policy is fairly standard in the franchise industry, as it incentivizes timely payments and ensures the franchisor has the necessary funds for operations and advertising.
Prospective franchisees should ensure they understand the reporting and payment schedule to avoid late fees and maintain a good relationship with Carbones Pizzeria. Setting up a system for tracking sales and remitting royalties on time will be essential for managing cash flow and staying in compliance with the franchise agreement.