How does Carbones Pizzeria aggregate gross sales for royalty calculations?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchisor aggregates its calculation of gross sales to include all of a franchisee's Carbones Pizzeria restaurants during each month. This means that if a franchisee owns multiple Carbones Pizzeria locations, the gross sales from all locations are combined when calculating the royalty fees due to the franchisor.

The royalty structure involves tiered percentages based on total gross sales per calendar year. The franchisee pays 4% of total gross sales on the initial $1,000,000 in gross sales per calendar year. The royalty then reduces to 3% of gross sales on the next $1,000,000 per calendar year. Finally, the royalty is reduced to 2% of gross sales over $2,000,000 in such calendar year.

However, sales of alcohol by the franchisee at a facility which is a "fully licensed liquor establishment" licensed to sell alcohol are not included in the calculation of gross sales. This exclusion could significantly impact the royalty payments for franchisees that operate locations with substantial alcohol sales. Franchisees should carefully consider the potential impact of this exclusion on their overall profitability and discuss any concerns with Carbones Pizzeria before signing the franchise agreement.