What were the advertising fund revenues for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
asury stock, at cost | (34,556) | | Total stockholder's equity | 941,550 | | | | | Total liabilities and stockholder's equity | $ 1,040,625 |
For the Year ended October 31, 2022 Consolidated Statement of Income
| Royalties | $ 827,392 | |----------------------------------|---------------| | Company restaurant sales | 615,202 | | Advertising fund revenues | 252,382 | | Rebate revenue | 159,151 | | Gross revenue | 1,854,127 | | Cost of company restaurant sales | | | Food and beverage | 223,206 | | Labor | 432,133 | | Direct expenses | 151,375 | | General and administrative | 83,610 890,324 | | Operating expenses | | | Marketing and advertising | 505,675 | | General and administrative | 506,834 | | Total operating expenses | 1,012,509 | | Loss from operations | (48,706) | | Other income | 269,196 | | Income before income taxes | 220,490 | | Income tax expense | 56,702 | | Net income | $ 163,788 |
M & T Pizza Incorporated and Subsidiaries Consolidated Statement of Changes in Stockholder's Equity For the Year ended October 31, 2022
Controlling interest in equity
| | Commo | on Stock | Additional paid in | Retained | Treasury | | |---------------------------|--------|----------|--------------------|------------|-------------|---------------| | | Shares | Amount | capital | earnings | Stock | Total | | | | | | | | | | Balance, October 31, 2021 | 2,500 | $ 2,500 | $266,117 | $ 543,701 | $ (34,556) | $ 777,762 | | Net income | | | | 163,788 | | 163,788 | | Balance, October 31, 2022 | 2,500 | $ 2,500 | $ 266,117 | $ 707,489 | $ (34,556) | $ 941,550 |
Consolidated Statement of Cash Flows For the Year ended October 31, 2022
| Net income | $ 163,788 |
|---|---|
| Adjustments to reconcile net income | |
| to net cash (used-in) operating activities | |
| Depreciation and amortization | 13,190 |
| Changes in current assets and liabilities | |
| Accounts receivable | (36,337) |
| Due from stockholder | (442,937) |
| Accounts receivable-related party | (45,140) |
| Prepaid expenses | (9,231) |
| Prepaid income taxes | 12,960 |
| Accounts payable | (12,853) |
| Accrued expenses and other | 1,576 |
| Accrued income taxes | 71,420 |
| Net cash (used-in) operating activities | (283,564) |
| Cash flows from investing activities | |
| Additions to property, plant and equipment | (25,168) |
| Net cash (used-in) investing activities | (25,168) |
| Change in cash and cash equivalents | (308,732) |
| Cash, and cash equivalents at beginning of year | 411,648 |
| Cash, and cash equivalents at end of year | $ 102,916 |
Notes to Consolidated Financial Statements As of and for the Year ended October 31, 2022
A. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
M & T Pizza Incorporated and Subsidiaries (collectively the Company) is engaged in the business of selling restaurant franchises. The Company generates revenue primarily from restaurant royalties and franchise fees from franchised Carbone's Pizzeria locations in Minnesota, Wisconsin, and Montana and the operation of a Company owned franchise in Minnesota.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the advertising fund revenues for the years ending October 31, 2022, October 31, 2023, and October 31, 2024 are detailed in the provided financial statements. For the year ended October 31, 2022, the advertising fund revenues were $252,382. For the year ended October 31, 2023, the advertising fund revenues totaled $268,596. The advertising fund revenues for the year ended October 31, 2024, amounted to $289,604.
These figures represent the income Carbones Pizzeria collected specifically for advertising purposes, primarily through royalties from franchisees. These funds are earmarked to enhance public recognition of the Carbones Pizzeria brand. As a prospective franchisee, understanding the advertising fund's revenue is crucial because it indicates the financial resources available for marketing and promotional activities that support the entire franchise system.
The advertising fund revenues reflect the scale of advertising and marketing efforts Carbones Pizzeria can undertake. A higher revenue generally allows for more extensive and impactful campaigns, potentially benefiting all franchisees through increased brand awareness and customer traffic. Franchisees should inquire about how these funds are allocated and the specific marketing strategies employed by Carbones Pizzeria to ensure their contributions are used effectively.
It is important to note that while these figures represent the advertising fund revenues, they do not detail the actual advertising expenses incurred by Carbones Pizzeria. Franchisees should also review the advertising expenses to understand how the revenues are being utilized and to assess the effectiveness of the marketing programs.