What happens if a Carbones Pizzeria franchisee fails to pay amounts due?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
tice 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.
e. Any Royalty payment not remitted on time shall bear interest at the rate of one and a half percent (1.5%) per month, until such time as it is received by Franchisor; provided, however, that if any applicable state law limits the maximum legal interest rate to a lower amount, then in that event the lower interest rate will be applicable.
6. Advertising; Advertising Fee.
- a. Franchisor must approve all advertising of the Restaurant by or on behalf of Franchisee before it is published. Franchisee shall work with Franchisor's approved design firm in creating and publishing any advertising
- b. Franchisee may not offer, promote or sell any products or services or make use of any of the Names and Marks, via any social media presence, including any websites, hashtags, profiles or accounts relating to the Franchise, without Franchisor's prior written approval. Franchisee acknowledges that Franchisor may also impose prohibitions on Franchisee posting or blogging of comments about Franchisor, the Restaurant, or the Carbone System. The foregoing prohibition includes personal blogs, common social networks like Facebook, Instagram, TikTok, X, Snapchat and Pinterest; professional networks, business profiles or online review or opinion sites like LinkedIn, Google Business Profile or Yelp; live-blogging tools like X and Snapchat;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, failure to make payments can result in multiple consequences. If a franchisee fails to timely report Gross Sales, withholds access to accounting and financial systems, or otherwise fails to pay amounts due, Carbones Pizzeria may debit the franchisee's account for 110% of the Royalty fees and Advertising Contributions last paid by the franchisee.
Additionally, any Royalty payment not remitted on time will accrue interest at a rate of 1.5% per month until it is received by Carbones Pizzeria. However, if any applicable state law limits the maximum legal interest rate to a lower amount, then the lower interest rate will be applied.
Furthermore, Carbones Pizzeria may terminate the Franchise Agreement if the franchisee fails to make payment of any Royalty, Advertising Fees, or other amounts (including interest) due to Carbones Pizzeria. Termination will occur if the franchisee fails to cure such payment default within ten days of notice from Carbones Pizzeria. Upon termination of the agreement, the franchisee must immediately pay all monies owed to Carbones Pizzeria, cease using the Carbone's Pizzeria names and marks, and return all forms, advertising matter, bulletins, procedures, recipes, and manuals to Carbones Pizzeria.