Can Carbones Pizzeria allocate a portion of the advertising funds to cover employee costs?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
hose threshold to cease payments is less than $2,000,000.
The purpose of the fund is to develop marketing and advertising programs that benefit the Carbone's Pizza brand. This means we may use monies in the fund for any purpose that promotes the franchise system, and our trademarks, 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 our 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.
We currently use a design firm that produces our advertising materials. However, we may change this firm at any time. Advertising may be placed in local or regional traditional media. We also advertise on billboards and buses. We may also advertise over the Internet including social media channels. We do not guarantee that advertising expenditures from the Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria can allocate a portion of the advertising funds to cover the costs of their employees who provide services to the fund. The purpose of the advertising fund is to develop marketing and advertising programs that benefit the Carbone's Pizza brand.
This means that the funds can be used for various purposes that promote the franchise system and its trademarks. These include creating, producing, and placing consumer advertising, purchasing marketing-related technology platforms, covering the costs of media, administering advertising programs, supporting in-house staff, and conducting market research.
Carbones Pizzeria does not guarantee that advertising expenditures from the fund will directly benefit each franchisee on a pro rata basis or at all, and they have no obligation to spend any amount on advertising in a franchisee's specific territory. Any advertising monies not used in a given year will be carried over to the next year, and any interest earned by the funds will be used for advertising before any principal is used. The funds will not be used to solicit the sale of franchises. Although Carbones Pizzeria does not audit the fund, they will provide an annual accounting of how the fund proceeds were spent for the previous year upon request.