What is the deadline for Carbones Pizzeria franchisees to pay royalty fees for the previous week's sales?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable for royalty fees 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.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees must submit royalty payments for the preceding week's sales by the first day of each week. Additionally, advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week.
This means a Carbones Pizzeria franchisee needs to have systems in place to accurately track weekly sales and ensure that royalty payments are submitted promptly to avoid potential penalties. Failing to pay on time may result in additional scrutiny from Carbones Pizzeria management, and interest charges could be applied at a rate of up to 12% annually.
Timely payment of royalties is a standard requirement in franchising, as it directly impacts the franchisor's revenue stream and ability to provide ongoing support and services to the franchise network. Franchisees should factor these payment deadlines into their cash flow management and operational procedures to maintain a good standing with Carbones Pizzeria.