table_specific

What was the advertising fund revenue for Carbones Pizzeria?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

tockholder's equity | $ 1,454,272 |

Consolidated Statement of Operations For the Year Ended October 31, 2024

Royalties $ 980,131
Company restaurant sales 726,642
Advertising fund revenues 289,604
Rebate revenue 159,266
Total revenues 2,155,643
Cost of company restaurant sales
Food and beverage 226,979
Labor 624,395
Direct expenses 191,618
Total cost of company restaurant sales 1,042,992
Operating expenses
Marketing and advertising 237,855
General and administrative 735,475
Total operating expenses 973,330
Income from operations 139,321
Other income (expense)
Interest income 35,160
Interest expense (4,108)
Other income (39,824)
Loss on disposition of property and equipment (123)
Total other in

Source: Item 22 — CONTRACTS (FDD page 30)

What This Means (2025 FDD)

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the advertising fund revenue for the year ended October 31, 2024, was $289,604. This revenue is generated from royalties that franchisees contribute as outlined in their franchise agreements. The purpose of this fund is to enhance public recognition of the Carbones Pizzeria brand.

For a prospective franchisee, this means a portion of their royalty payments will be allocated to this advertising fund. It's important to note that while franchisees contribute to the fund, Carbones Pizzeria manages the fund and decides how the money is spent to promote the brand. The FDD also shows that the company itself spent $237,855 on marketing and advertising for the same period.

Understanding the advertising fund is crucial for potential franchisees. They should inquire about the specific advertising strategies employed by Carbones Pizzeria, how the funds are allocated (e.g., digital marketing, traditional advertising, local store marketing), and the measurable impact of these campaigns. This information will help franchisees assess the value they receive from their contributions to the advertising fund and how it supports their local business. Also, the advertising expenses are different from the advertising fund revenues, so it is important to understand how the fund is used.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.