Are all fees paid to Carbones Pizzeria refundable?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) All fees are paid to us, are non-refundable, and are uniform for all new franchisees. (Franchisees who signed earlier versions of our franchise agreements may be paying lower fees in some categories.) If your state, or any governmental body in your state, charges a tax on any fee you owe to us or to our affiliates, then you must pay an additional amount equal to the amount of this tax. This does not apply to any federal or Minnesota income taxes we have to pay. For all amounts you owe to us, we have the right to collect these fees by preauthorized check draft or pre-authorized credit card charge or electronic funds transfer/direct debit and you must sign all documents we require to accomplish this payment method. An example of the Electronic Funds Transfer/Debit Authorization Form you must sign is attached to the Franchise Agreement. By the 5th of each month for the prior month you must provide us with a sales report disclosing to us your sales information for the prior month and any other information we may require. If a date due for payment is not a business day the payment due date will be the immediately following business day.
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, all fees paid to the company are non-refundable. This policy applies uniformly to all new franchisees, although the document notes that franchisees who signed earlier agreements may have different fee structures. This means that once a franchisee pays any fee to Carbones Pizzeria, they cannot get that money back, regardless of the circumstances.
This non-refundable policy has significant implications for prospective franchisees. It underscores the importance of careful due diligence and a thorough understanding of all financial obligations before signing the franchise agreement and paying any fees. Franchisees should be absolutely certain of their decision to invest in a Carbones Pizzeria franchise, as any upfront fees or ongoing payments will not be returned, even if the franchisee later decides to terminate the agreement or if the franchise fails to perform as expected.
While non-refundable fees are common in the franchise industry, prospective franchisees should carefully consider this policy in light of the specific fees charged by Carbones Pizzeria, such as the royalty fee of 4% of gross sales on the initial $1,000,000 in gross sales per year, 3% of gross sales on the next $1,000,000 per year and 2% of gross sales on any additional gross sales over $2,000,000 per year, the advertising fee of 1% of total gross sales up to $2,000,000 per year, the transfer fee of $5,000, the audit fee of the cost of the audit plus 1.5% interest per month on underpayment from date initially due, and the renewal fee of $1,500. Understanding the magnitude of these non-refundable fees is crucial for making an informed investment decision. Franchisees should also be aware that if their state or any governmental body in their state charges a tax on any fee they owe to Carbones Pizzeria or its affiliates, they must pay an additional amount equal to the amount of this tax.