What advertising and promotional requirements must a Carbones Pizzeria franchisee adhere to?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty payment not remitted on time shall bear interest at the rate of one and a half percent (1.5%) per month, until such time as it is received by Franchisor; provided, however, that if any applicable state law limits the maximum legal interest rate to a lower amount, then in that event the lower interest rate will be applicable.
6. Advertising; Advertising Fee.
- a. Franchisor must approve all advertising of the Restaurant by or on behalf of Franchisee before it is published. Franchisee shall work with Franchisor's approved design firm in creating and publishing any advertising
- b. Franchisee may not offer, promote or sell any products or services or make use of any of the Names and Marks, via any social media presence, including any websites, hashtags, profiles or accounts relating to the Franchise, without Franchisor's prior written approval. Franchisee acknowledges that Franchisor may also impose prohibitions on Franchisee posting or blogging of comments about Franchisor, the Restaurant, or the Carbone System. The foregoing prohibition includes personal blogs, common social networks like Facebook, Instagram, TikTok, X, Snapchat and Pinterest; professional networks, business profiles or online review or opinion sites like LinkedIn, Google Business Profile or Yelp; live-blogging tools like X and Snapchat; virtual worlds, metaverses, file, audio and video-sharing sites, and other similar social networking or media sites or tools.
- c. Franchisor will maintain and administer the Carbone's Pizza Advertising Fund. Franchisee will pay Franchisor monthly, at the same time as it makes its Royalty payment, an "Advertising Fee" of one percent (1%) of monthly Gross Sales. The Advertising Fee shall not be due on Gross Sales exceeding $2,000,000 in any calendar year.
- d. Franchisor may use monies in the Carbone's Pizza Advertising Fund for any purpose that promotes the Carbone System, and its Names and Marks, including the creation, production and placement of consumer advertising; purchase of marketing related technology platforms, such as social media management, market research, consumer insights and analytics; costs of preparing and conducting local, regional or national media of Franchisor's choice, including: television, radio, internet, magazine, direct mail and newspaper, billboard, social media and digital advertising, direct mail campaigns, and other public relations activities; developing and/or hosting an internet web page or similar activities; administering advertising programs, direct mail and other media advertising; in-house staff assistance and related administrative costs; local and regional promotions; public relations campaigns including the cost of retaining public relations firms; consumer and market research (including surveys and sampling); and other advertising and marketing activities.
- e. Advertising Fees not paid by Franchisee as required herein shall bear interest at the rate of one and a half percent (1.5%) per month, provided, however, that in no event shall the rate of interest payable by Franchisee on any unpaid balance under this Agreement exceed the maximum legal rate under applicable law.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees face several requirements regarding advertising and promotions. Carbones Pizzeria requires that all advertising of the Restaurant, whether created by or for the franchisee, must receive prior approval from the Franchisor. Franchisees are obligated to collaborate with the Franchisor's designated design firm for the creation and publication of any advertising materials. Franchisees are also restricted from using social media to promote any products or services related to the franchise without the Franchisor's written consent. This includes websites, hashtags, profiles, or accounts associated with the franchise.
Carbones Pizzeria maintains and administers the Carbone's Pizza Advertising Fund, and franchisees are required to contribute to this fund by paying an Advertising Fee of one percent (1%) of their monthly Gross Sales. However, this fee is capped, and franchisees are not required to pay the Advertising Fee on Gross Sales exceeding $2,000,000 in any calendar year. The funds collected in the Advertising Fund can be used by Carbones Pizzeria for various purposes aimed at promoting the Carbone System and its brand. These activities include creating and placing consumer advertising, investing in marketing-related technology platforms, and conducting local, regional, or national media campaigns across different channels such as television, radio, internet, and social media.
Furthermore, Carbones Pizzeria mandates that franchisees participate in soft drink group buying and advertising programs, as well as any other group buying programs deemed necessary by the Franchisor. Franchisees must adhere to the advertising and promotional requirements set forth by Carbones Pizzeria and cannot engage in any advertising activities without the Franchisor's specific consent. Franchisees are also required to display the names and marks specified by Carbones Pizzeria on the Restaurant and any related stationery, and they are prohibited from displaying the name of any other product or person unless explicitly authorized in writing by the Franchisor. Failure to pay Advertising Fees on time will result in interest accruing at a rate of one and a half percent (1.5%) per month, although this rate cannot exceed the maximum legal rate under applicable law.