What is the due date for continuing franchise 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. 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 are due on or before the first day of each week. These royalties are calculated from the sales of the preceding week. This means that Carbones Pizzeria franchisees must remit their royalty payments weekly, based on the previous week's sales figures.
In addition to continuing franchise fee royalties, Carbones Pizzeria franchisees also pay advertising fee royalties. These advertising fee royalties are due on or before Tuesday of each week, also calculated from the sales of the preceding week. This separate due date for advertising fees means franchisees must track and remit two different types of royalties on slightly different schedules.
Carbones Pizzeria enforces timely payments, as the document states that receivables not received on time are subject to additional scrutiny from management. Furthermore, these late payments may incur interest charges at a rate of up to 12% annually. This highlights the importance of Carbones Pizzeria franchisees maintaining accurate sales records and adhering to the weekly payment schedule to avoid penalties and maintain a good standing with the franchisor.