factual

Does Carbones Pizzeria audit the advertising fund?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

Although we do not audit the fund, at your request, we will make available to you an annual accounting that shows how the fund proceeds were spent for the previous year.

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 advertising fund is not audited. However, Carbones Pizzeria will provide an annual accounting of how the fund's proceeds were spent in the previous year if a franchisee requests it. This accounting offers a degree of transparency, allowing franchisees to see where their advertising fees are being allocated.

While the fund isn't formally audited, the annual accounting provides some oversight. This is somewhat less rigorous than a full audit, which would involve an independent examination of the fund's financial records. The FDD specifies that advertising monies collected but not used in one year are carried over to the next year, and any interest earned on the funds will be used for advertising before any principal is used.

It is important for prospective Carbones Pizzeria franchisees to understand that while they contribute 1% of their monthly Gross Sales (up to $2,000,000) to the advertising fund, there is no guarantee that these expenditures will directly benefit them or any other franchisee. The franchisor has no obligation to spend any amount on advertising in a franchisee's specific territory. Franchisees are invited to participate and provide input related to advertising methods and expenditures, and decisions are made based upon consensus of franchisees.

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.