Does Carbones Pizzeria's affiliate receive a flat amount from any supplier to the franchise system?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ve a single supplier or item.
We have the right to designate a single source or sources from whom you must purchase any required products and services, and we and/or our affiliates may be that single source or one or more of the sources. We and our affiliates may derive revenue from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory, products and other items from our suppliers. We and our affiliates may receive rebates from various suppliers based upon franchisee purchases from the suppliers. These rebates may be based on a flat amount or percentage of franchisee purchases. Currently, these rebates range from $1 to $10 per case purchased depending upon the item purchased to 1-7% of the amount paid by the franchisee for the product, depending on the product. Our affiliate also receives a flat amount from one supplier to our franchise system. During our fiscal year ended October 31, 2024, our affiliate received $159,266 in revenue from rebates paid to it based on franchisee purchases, of which $30,000 was contributed to our Advertising Fund. This information is taken from our affiliate's
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's affiliate does receive a flat amount from one supplier within the franchise system. Additionally, Carbones Pizzeria and its affiliates may receive rebates from various suppliers based on franchisee purchases. These rebates can be either a flat amount or a percentage of the franchisee's purchases. Currently, these rebates range from $1 to $10 per case purchased, depending on the item, or from 1% to 7% of the amount paid by the franchisee for the product, depending on the product.
During the fiscal year that ended October 31, 2024, Carbones Pizzeria's affiliate received $159,266 in revenue from rebates paid based on franchisee purchases. Of this amount, $30,000 was contributed to the Advertising Fund. This information is derived from the affiliate's internal financial statements.
This arrangement means that a portion of a franchisee's payments to suppliers indirectly benefits Carbones Pizzeria's affiliate. While some of these funds are allocated to the Advertising Fund, the franchisee should be aware that supplier relationships are structured to provide financial benefits to the franchisor's affiliate, which may influence supplier selection and pricing.