factual

Is Carbones Pizzeria allowed to use advertising funds to solicit the sale of franchises?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

We will not spend any portion of any advertising fund for advertising principally designed to solicit the sale of franchises.

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, the company is prohibited from using advertising funds to solicit new franchise sales. The advertising fund is specifically for marketing and advertising programs that benefit the Carbones Pizzeria brand and promote the franchise system.

Carbones Pizzeria details the types of expenses that can be paid for with advertising funds, including creating and placing consumer advertising, purchasing marketing technology, conducting market research, and covering costs related to various media advertising channels. These channels include television, radio, internet, magazines, direct mail, newspapers, billboards, social media, and digital advertising. The funds can also be used for public relations activities, website development, administering advertising programs, in-house staff assistance, local and regional promotions, and other marketing activities.

While Carbones Pizzeria outlines how the advertising funds are used to promote the brand and support franchisees' businesses, it explicitly states that these funds cannot be used for the purpose of soliciting new franchisees. This ensures that the advertising fees paid by franchisees are used to increase brand awareness and customer traffic, rather than to expand the franchise network.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.