When are continuing franchise fee royalties due to Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable for continuing franchise fee royalties from franchisees are due on or before the first day of each week for the sales during the preceding week and accounts receivable for advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week. All receivables not received on time receive additional scrutiny from management and may be charged interest at rates up to 12% annually. Accounts receivable are occasionally written-off on a case by case basis.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, continuing franchise fee royalties from franchisees are due on or before the first day of each week. These payments cover sales made during the preceding week. Additionally, advertising fee royalties are due on or before Tuesday of each week, also for the sales of the preceding week.
Carbones Pizzeria closely monitors these payments, as the document states that receivables not received on time are subject to additional scrutiny from management. Furthermore, the franchise agreement specifies that interest may be charged on late payments, at rates of up to 12% annually. This highlights the importance of franchisees maintaining timely payments to avoid penalties and maintain a good standing with Carbones Pizzeria.
For a prospective Carbones Pizzeria franchisee, understanding these payment terms is crucial for managing cash flow and ensuring compliance with the franchise agreement. The weekly payment schedule requires careful tracking of sales and prompt remittance of royalties. The potential for interest charges on late payments underscores the need for efficient financial management and adherence to the established payment deadlines.