How much did Carbones Pizzeria collect in royalties?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company receives a service fee based on a percentage of sales each week from the franchised locations as royalties. Revenue from royalties is recognized each week based on a percentage of reported franchisee sales.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Carbones Pizzeria generates revenue through royalties, which are a percentage of sales collected weekly from franchised locations. The revenue from these royalties is recognized each week, based on the reported sales from franchisees. However, the document does not specify the exact percentage used to calculate royalties, nor does it state the total amount of royalty revenue that Carbones Pizzeria collected during any reporting period.
Without specific figures, prospective franchisees cannot determine the financial impact of royalty payments on their potential earnings. Understanding the royalty percentage is crucial for projecting expenses and profitability.
To gain clarity, a prospective Carbones Pizzeria franchisee should ask the franchisor for detailed financial statements showing the total royalty revenue collected over the past several years. Additionally, they should inquire about the specific percentage used to calculate royalties and whether this percentage is subject to change.