Is Carbones Pizzeria obligated to spend any specific amount on advertising in a franchisee's territory?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria has no obligation to spend any specific amount on advertising in a franchisee's territory. While franchisees are required to pay an advertising fee of 1% of monthly Gross Sales up to $2,000,000, with no advertising fee on Gross Sales over that amount in any given year, these funds go into the Carbone's Pizza Advertising Fund, which is used to promote the brand generally. The company-owned restaurant also contributes 1% of gross sales to the advertising fund. There are a couple of exceptions to this policy, as one franchisee does not pay an advertising fee and another has a threshold lower than $2,000,000.

Carbones Pizzeria uses the advertising fund for various marketing and advertising programs to benefit the Carbone's Pizza brand. These programs may include creating and placing consumer advertising, purchasing marketing-related technology platforms, and conducting local, regional, or national media campaigns through various channels such as television, radio, internet, and social media. The FDD specifies that Carbones Pizzeria does not guarantee that advertising expenditures from the fund will directly benefit any franchisee on a pro rata basis or at all.

Although Carbones Pizzeria does not require franchisees to spend a minimum amount on local advertising, they encourage franchisees to advertise their businesses in their local trade areas. However, all local advertising must be approved by Carbones Pizzeria, and franchisees must work with their approved design firm for creating and publishing any advertising. Franchisees must also obtain approval before establishing any websites, hashtags, profiles, or accounts related to Carbones Pizzeria, their restaurant, or the franchise system.

Prospective franchisees should consider that while they contribute to the advertising fund, there is no guarantee of direct benefit from those funds in their specific territory. They should also factor in the potential costs and requirements associated with local advertising, including the need for franchisor approval and the use of approved vendors. Understanding the allocation of advertising funds and the level of support for local marketing efforts is crucial for making an informed investment decision.