Are alcohol sales excluded from the 'Gross Sales' calculation for a Carbones Pizzeria franchise?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, sales of alcohol are excluded from the calculation of Gross Sales under specific conditions. If the franchisee operates a facility that is a "fully licensed liquor establishment" licensed to sell alcohol, then those alcohol sales are not included when calculating Gross Sales for royalty payments. This provision can significantly affect the royalty fees paid by a Carbones Pizzeria franchisee, especially for locations where alcohol sales constitute a substantial portion of revenue.

This exclusion only applies if the franchisee has a fully licensed liquor establishment. The FDD also states that a franchisee must obtain prior written approval from Carbones Pizzeria before offering or selling alcoholic beverages. This approval is at Carbones Pizzeria's sole discretion and may require additional training or insurance. This requirement ensures that the sale of alcohol aligns with Carbones Pizzeria's standards and complies with applicable laws.

For a prospective Carbones Pizzeria franchisee, understanding this distinction is crucial for financial planning. If the franchisee intends to sell alcohol, they must first secure the necessary licenses and approvals from Carbones Pizzeria. If approved and the franchisee operates a fully licensed liquor establishment, they will benefit from the exclusion of alcohol sales from the Gross Sales calculation, potentially lowering their royalty payments. However, they must also factor in the costs associated with obtaining and maintaining the necessary licenses and insurance, as well as adhering to Carbones Pizzeria's standards for alcohol sales.