How is interest earned by the Carbones Pizzeria advertising funds used?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, any interest earned by the advertising funds will be used for advertising purposes before any of the principal is used. Carbones Pizzeria collects an advertising fee of 1% of monthly Gross Sales up to $2,000,000; no advertising fee is charged on Gross Sales exceeding $2,000,000 in a year.

The purpose of the advertising fund is to develop marketing and advertising programs that benefit the Carbones Pizzeria brand. This includes using the funds for various promotional activities such as consumer advertising, purchasing marketing-related technology platforms, and conducting local, regional, or national media campaigns. These campaigns may include television, radio, internet, magazine, direct mail, newspaper, billboard, social media, and digital advertising, as well as public relations activities.

Carbones Pizzeria may use a design firm to produce advertising materials but can change this firm at any time. Advertising may be placed in local or regional traditional media, billboards, buses, and the Internet, including social media channels. However, Carbones Pizzeria does not guarantee that advertising expenditures from the fund will directly benefit any franchisee on a pro rata basis or at all, and they have no obligation to spend any amount on advertising in a franchisee's specific territory.

Unused advertising monies collected in one year will be carried over to the next year. Additionally, a portion of the funds may be allocated to cover the costs of Carbones Pizzeria employees who provide services to the fund. The advertising fund will not be used for advertising designed to solicit the sale of franchises. While Carbones Pizzeria does not audit the fund, they will provide an annual accounting of how the fund proceeds were spent for the previous year upon request.