When are advertising fee royalties from Carbones Pizzeria franchisees due?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable for continuing franchise fee royalties 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. This payment covers sales made during the preceding week.
This means that if a Carbones Pizzeria franchisee makes sales between Wednesday and Tuesday, they must remit the advertising fee royalties to the company by the following Tuesday. This weekly payment schedule ensures a consistent flow of funds into the advertising fund, which Carbones Pizzeria uses to promote the brand.
Carbones Pizzeria also scrutinizes late payments and may charge interest on overdue amounts, up to an annual rate of 12%. This policy incentivizes franchisees to make timely payments and helps Carbones Pizzeria manage its cash flow effectively. Franchisees should be aware of this payment schedule and the potential consequences of late payments to avoid incurring additional charges.