Can Carbones Pizzeria independently access a restaurant's accounting system to determine gross sales?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, Carbones Pizzeria has the right to independently access a restaurant's accounting system to determine gross sales and fees due. Specifically, Carbones Pizzeria reserves the right to access the restaurant's accounting and financial systems, including any systems used or required by Carbones Pizzeria for the Carbone System. The franchisee is obligated to grant Carbones Pizzeria access to all such accounting and financial systems and data.

This direct access allows Carbones Pizzeria to verify the accuracy of reported gross sales, which are used to calculate royalty fees and advertising fees. The franchisee is required to furnish full and complete sales reports to Carbones Pizzeria by the 5th of each month for the previous month, as well as quarterly and annual financial statements. Maintaining accurate records through the POS system is essential, as these records are open to inspection, examination, and audit by Carbones Pizzeria and its representatives at all reasonable times.

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 for 110% of the royalty and advertising fees last paid. This clause underscores the importance of transparency and adherence to the financial reporting requirements outlined in the franchise agreement. Any royalty payment not remitted on time will bear interest at a rate of 1.5% per month, unless applicable state law limits the maximum legal interest rate to a lower amount.