Is a Carbones Pizzeria franchisee required to pay the Advertising Fee at the same time as the Royalty payment?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
est; professional networks, business profiles or online review or opinion sites like LinkedIn, Google Business Profile or Yelp; live-blogging tools like X and Snapchat; virtual worlds, metaverses, file, audio and video-sharing sites, and other similar social networking or media sites or tools.
- c. Franchisor will maintain and administer the Carbone's Pizza Advertising Fund. Franchisee will pay Franchisor monthly, at the same time as it makes its Royalty payment, an "Advertising Fee" of one percent (1%) of monthly Gross Sales. The Advertising Fee shall not be due on Gross Sales exceeding $2,000,000 in any calendar year.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees are required to pay the Advertising Fee at the same time as they make their Royalty payment. The Advertising Fee is one percent (1%) of monthly Gross Sales. However, the Advertising Fee is not due on Gross Sales exceeding $2,000,000 in any calendar year.
This means that a Carbones Pizzeria franchisee must budget for both the royalty and advertising fees to be paid together monthly. This simultaneous payment structure ensures that Carbones Pizzeria receives both revenue streams consistently.
If a franchisee fails to pay the Advertising Fee as required, the unpaid amount will accrue interest at a rate of one and a half percent (1.5%) per month. However, the interest rate will not exceed the maximum legal rate under applicable law. This late fee policy incentivizes timely payments and protects Carbones Pizzeria's financial interests.