What happens if a Carbones Pizzeria franchisee withholds access to accounting systems?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Franchisees 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.
This policy ensures that Carbones Pizzeria can accurately monitor sales and collect fees, even if a franchisee is uncooperative. It also places a significant financial burden on franchisees who fail to comply with reporting and access requirements, as they could be debited an amount greater than what they initially owed.
Prospective franchisees should be aware of this policy and ensure they have systems in place to accurately track and report sales data. They should also maintain open communication with Carbones Pizzeria to avoid any misunderstandings or disputes regarding fees and access to financial information.