What happens if a Carbones Pizzeria franchisee fails to report gross sales?
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;
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee fails to report gross sales in a timely manner, withholds access to accounting and financial systems, or otherwise fails to pay amounts due, Carbones Pizzeria has the right to debit the franchisee's account. The debit will be for one hundred ten percent (110%) of the Royalty fees and Advertising Contributions last paid by the franchisee.
In addition to the above, any royalty payment not remitted on time will bear interest at a rate of one and a half percent (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.
Carbones Pizzeria also reserves the right, without notice to the franchisee, to independently access the Restaurant's accounting and financial systems and data or any accounting or financial systems used or required by Carbones Pizzeria to determine Gross Sales and fees due. The franchisee is obligated to grant Carbones Pizzeria access to all such accounting and financial systems and data.