What is the due date for advertising fee royalties from Carbones Pizzeria franchisees?
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.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, advertising fee royalties from franchisees are due on or before Tuesday of each week. This payment covers sales made during the preceding week.
This means that a Carbones Pizzeria franchisee must calculate and remit their advertising fee royalties every week, ensuring the payment arrives by Tuesday. This requirement ensures a consistent flow of funds into the advertising fund, which Carbones Pizzeria uses to promote the brand.
The FDD also states that late payments may face additional scrutiny from management and could be subject to interest charges, potentially up to 12% annually. This underscores the importance of timely payments to avoid penalties and maintain a good financial standing with Carbones Pizzeria. Franchisees should factor this weekly payment schedule into their cash flow management to ensure compliance and avoid any late fees.