What happens if a Carbones Pizzeria franchisee withholds access to accounting and financial systems?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
n forms provided by Franchisor from time-to-time. Any due date for payment on a non-business day shall be due the immediately following business day.
- d. Franchisor may collect all amounts due under this Agreement via electronic funds transfer/debit. Franchisee shall execute the Electronic Funds Transfer/Debit Authorization attached to this Agreement as Exhibit A. 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, Carbones Pizzeria reserves the right to independently access a Restaurant's accounting and financial systems to determine gross sales and fees due. The franchisee must grant access to all such accounting and financial systems and data.
If a Carbones Pizzeria franchisee fails to report gross sales in a timely manner, withholds access to accounting and financial systems or data, or otherwise fails to pay amounts due to Carbones Pizzeria, Carbones Pizzeria may debit the franchisee's account. The debit will be for 110% of the royalty fees and advertising contributions last paid by the franchisee.
In addition, any royalty payment not remitted on time will bear 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 applicable.