What is the financial impact on Carbones Pizzeria's Advertising Fund from rebates received by its affiliate?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
her items from our suppliers. We and our affiliates may receive rebates from various suppliers based upon franchisee purchases from the suppliers. These rebates may be based on a flat amount or percentage of franchisee purchases. Currently, these rebates range from $1 to $10 per case purchased depending upon the item purchased to 1-7% of the amount paid by the franchisee for the product, depending on the product. Our affiliate also receives a flat amount from one supplier to our franchise system. During our fiscal year ended October 31, 2024, our affiliate received $159,266 in revenue from rebates paid to it based on franchisee purchases, of which $30,000 was contributed to our Advertising Fund. This information is taken from our affiliate's
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's affiliate receives rebates from suppliers based on franchisee purchases. These rebates can range from $1 to $10 per case purchased, depending on the item, or 1-7% of the amount paid by the franchisee for the product, depending on the product.
During the fiscal year ending October 31, 2024, Carbones Pizzeria's affiliate received $159,266 in revenue from these rebates. Of this amount, $30,000 was contributed to the Carbones Pizzeria Advertising Fund. This information is derived from the affiliate's internal financial statements.
For a prospective Carbones Pizzeria franchisee, this means that a portion of the money they spend on supplies is ultimately used to support the brand's advertising efforts. While the franchisee does not directly control how these rebate funds are spent, they benefit from the increased advertising and brand awareness that the contributions to the Advertising Fund provide.