What is the franchisee's obligation regarding access to accounting and financial systems for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right, without notice to Franchisee, to independently access the Restaurant's accounting and financial systems and data or any accounting or financial systems used or required by Franchisor for the Carbone System to determine Gross Sales and fees due to Franchisor under this Agreement, and Franchisee shall grant Franchisor access to all such accounting and financial systems and data.
If Franchisee fails to timely report Gross Sales for any period, withholds Franchisor's access to accounting and financial systems or data, or otherwise fails to pay amounts due to Franchisor, Franchisor may debit Franchisee's account for: (i) one hundred ten percent (110%) of the Royalty fees and Advertising Contributions last paid by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchisee is obligated to grant the franchisor independent, direct access to all data within the Restaurant's accounting and financial systems. This includes any accounting or financial systems used or required by Carbones Pizzeria for the Carbone System. Carbones Pizzeria reserves the right to access this data without prior notice to the franchisee in order to determine gross sales and fees due under the Franchise Agreement.
Furthermore, the franchisee is required to assist in facilitating this access. This means the franchisee must actively cooperate with Carbones Pizzeria to ensure they can readily access the necessary financial data. This obligation is crucial for Carbones Pizzeria to monitor the franchisee's performance, calculate royalties, and ensure compliance with the franchise agreement.
Failure to provide timely reports of gross sales or withholding access to accounting and financial systems can result in penalties. Carbones Pizzeria may debit the franchisee's account for 110% of the royalty fees and advertising contributions last paid by the franchisee. This provision underscores the importance of transparency and cooperation in financial matters between the franchisee and Carbones Pizzeria.