What was the gross revenue for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
M & T Pizza Incorporated and Subsidiaries (collectively "the Company") is engaged in the business of selling restaurant franchises. The Company generates revenue primarily from restaurant royalties and franchise fees from franchised Carbone's Pizzeria locations in Minnesota, Wisconsin, and Montana and the operation of a Company owned franchise in Minnesota.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not contain specific figures for the gross revenue of Carbones Pizzeria. However, the document does mention how the company generates revenue. Carbones Pizzeria generates revenue primarily from restaurant royalties and franchise fees from franchised locations in Minnesota, Wisconsin, and Montana, as well as from the operation of a company-owned franchise in Minnesota. The company recognizes revenue from royalties each week based on a percentage of reported franchisee sales.
While the FDD excerpts do not provide the exact gross revenue, they do offer insights into the company's revenue streams and accounting practices. For example, the excerpts detail how initial and renewal franchise fees are recognized over the contractual term of the franchise agreement, which is typically 10 years. Additionally, franchisees contribute royalties to an advertising fund, and the company expenses advertising costs as incurred.
A prospective franchisee should inquire directly with Carbones Pizzeria about the specific gross revenues for previous years. This information is crucial for understanding the financial performance of the franchise system and for making informed decisions about investing in a Carbones Pizzeria franchise. Specifically, a prospective franchisee should ask for the total gross revenue for the past 3-5 years, as well as a breakdown of revenue sources, such as royalties, franchise fees, and company-owned store sales.