What were the advertising fund revenues for Carbones Pizzeria for the year ended October 31, 2024?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2024.
Company Restaurant Sales
The Company earns revenue from sales at the Company owned restaurant and is recognized at the time of sale.
Advertising
In accordance with signed franchise agreements, franchisees contribute royalties to an advertising fund. The fund is to be used to maximize public recognition of Carbone's Pizzeria. The Company ex
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees contribute royalties to an advertising fund, which is used to promote public recognition of the brand. The company expenses advertising costs as they are incurred. For the year ended October 31, 2024, advertising expenses, which are included in sales and marketing expenses, totaled $237,855.
This means that while franchisees contribute to the advertising fund through royalties, the actual expenses incurred for advertising during the fiscal year amounted to $237,855. It is important to note that this figure represents the expenses, not necessarily the total revenue or contributions to the advertising fund. The expenses may not directly correlate with the contributions made by franchisees due to timing differences or other accounting practices.
A prospective franchisee should inquire about the specific policies regarding the advertising fund, including how contributions are calculated, how the funds are managed, and how advertising strategies are determined. Understanding the difference between contributions and actual expenses, as well as the decision-making process for advertising expenditures, is crucial for evaluating the value and effectiveness of the advertising program.