What is the interest rate on the note receivable that Carbones Pizzeria has with a franchisee?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, accounts receivable for continuing franchise fee royalties from franchisees are due on or before the first day of each week for the sales during the preceding week, and accounts receivable for advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week. If these receivables are not received on time, Carbones Pizzeria may charge interest at rates up to 12% annually.

This means that if a Carbones Pizzeria franchisee is late on their royalty or advertising fee payments, they could be charged interest on the outstanding balance. The interest rate can be up to 12% per year, which could significantly increase the amount owed if the payment is delayed for an extended period.

It is important for prospective Carbones Pizzeria franchisees to understand this policy and ensure that they make timely payments to avoid incurring interest charges. Franchisees should also be aware that accounts receivable are occasionally written off on a case-by-case basis, although the circumstances under which this occurs are not detailed in this excerpt.