How often does Carbones Pizzeria evaluate its accounts receivable?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD 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. All receivables not received on time receive additional scrutiny from management and may be charged interest at rates up to 12% annually. Accounts receivable are occasionally written-off on a case by case basis.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 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. Accounts receivable for advertising fee royalties from franchisees are due on or before Tuesday of each week for the sales during the preceding week.
Carbones Pizzeria subjects all receivables not received on time to additional scrutiny from management and may charge interest at rates up to 12% annually. The FDD states that accounts receivable are occasionally written off on a case-by-case basis.
This means that Carbones Pizzeria keeps a close watch on incoming payments from franchisees, with a weekly review process. Franchisees need to be aware that late payments may incur interest charges, and in some instances, unpaid balances may be written off, indicating a loss for Carbones Pizzeria.