How does Carbones Pizzeria handle advertising costs?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2024.
Company Restaurant Sales
The Company earns revenue from sales at the Company owned restaurant and is recognized at the time of sale.
Advertising
In accordance with signed franchise agreements, franchisees contribute royalties to an advertising fund. The fund is to be used to maximize public recognition of Carbone's Pizzeria. The Company ex
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees contribute royalties to an advertising fund as part of their signed franchise agreements. This fund is specifically designated to enhance public recognition of the Carbones Pizzeria brand. The company treats advertising costs as expenses as they are incurred.
The advertising expenses are categorized within sales and marketing expenses. For the year ending October 31, 2024, these expenses totaled $237,855. This indicates the level of investment Carbones Pizzeria made in advertising and promotion during that period.
In comparison, advertising and promotion expenses for the year ended October 31, 2022, were approximately $506,000, and for the year ended October 31, 2023, amounted to $278,545. These figures provide a historical view of the company's advertising expenditure, which can fluctuate year to year. As a prospective franchisee, it would be prudent to inquire about the details of the advertising fund's management, how the funds are allocated, and the specific advertising strategies employed by Carbones Pizzeria to promote the brand and support its franchisees.