What was the advertising fund revenue for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer 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.