What is the name of the fund that Carbones Pizzeria uses to administer advertising fees?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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- c. Franchisor will maintain and administer the Carbone's Pizza Advertising Fund. Franchisee will pay Franchisor monthly, at the same time as it makes its Royalty payment, an "Advertising Fee" of one percent (1%) of monthly Gross Sales. The Advertising Fee shall not be due on Gross Sales exceeding $2,000,000 in any calendar year.
- d. Franchisor may use monies in the Carbone's Pizza Advertising Fund for any purpose that promotes the Carbone System, and its Names and Marks, including the creation, production and placement of consumer advertising; purchase of marketing related technology platforms, such as social media management, market research, consumer insights and analytics; costs of preparing and conducting local, regional or national media of Franchisor's choice, including: television, radio, internet, magazine, direct mail and newspaper, billboard, social media and digital advertising, direct mail campaigns, and other public relations activities; developing and/or hosting an internet web page or similar activities; administering advertising programs, direct mail and other media advertising; in-house staff assistance and related administrative costs; local and regional promotions; public relations campaigns including the cost of retaining public relations firms; consumer and market research (including surveys and sampling); and other advertising and marketing activities.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 FDD, Carbones Pizzeria uses the "Carbone's Pizza Advertising Fund" to manage advertising fees. Franchisees are required to pay an Advertising Fee of one percent (1%) of monthly Gross Sales, which is contributed to this fund. However, this fee is not applied to Gross Sales exceeding $2,000,000 in any calendar year.
Carbones Pizzeria has discretion over how the advertising fund is used, with the stated purpose of promoting the Carbone System, Names, and Marks. This includes a wide range of marketing activities such as creating and placing consumer advertising across various media (television, radio, internet, etc.), purchasing marketing-related technology platforms, conducting market research, managing social media, and covering administrative costs related to advertising programs.
Prospective Carbones Pizzeria franchisees should understand that these advertising fees are mandatory and contribute to a collective fund managed by the franchisor. While the franchisee benefits from the franchisor's marketing efforts, they do not have direct control over how the funds are spent. It is important for franchisees to stay informed about the franchisor's marketing strategies and how the advertising fund is being utilized to support the brand and drive sales.