On what day of the month is the Carbones Pizzeria royalty fee due?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
wenty-five Thousand Dollars ($25,000.00) (the "Franchise Fee"), payable in full upon the execution of this Agreement. It is expressly understood and agreed by the parties that the Franchise Fee is and shall be fully earned by Franchisor upon the signing of this Agreement and no part of the Franchise Fee shall be refunded to Franchisee for any reason whatsoever.
- b. In addition to the Franchise Fee, Franchisee shall pay to the Franchisor during the term of this Agreement, a "Royalty" as follows: (a) 4% of total Gross Sales on the initial $1,000,000 in Gross Sales per calendar year, at which point the Royalty is reduced to (b) 3% of Gross Sales on the
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the royalty fee is payable monthly on the 10th day following the end of each month. This means that a franchisee must calculate their gross sales for the previous month and remit the royalty payment by the 10th of the following month.
For example, gross sales for January would need to be calculated, and the corresponding royalty payment made to Carbones Pizzeria by February 10th. This consistent monthly schedule allows Carbones Pizzeria to maintain a steady revenue stream and provides franchisees with a predictable payment timeline.
It is important to note that if the 10th of the month falls on a non-business day, the payment due date shifts to the next business day. Franchisees should also be aware that late royalty payments incur interest at a rate of 1.5% per month, potentially increasing the financial burden if payments are not made on time.