How often are royalties paid to Carbones Pizzeria from franchised locations?
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)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the company receives royalty payments from its franchisees weekly. These royalties are calculated as a percentage of the franchisee's sales. Carbones Pizzeria recognizes this royalty revenue each week based on the sales figures reported by the franchisee.
For a prospective Carbones Pizzeria franchisee, this means that a portion of their weekly sales will be remitted to the company as a royalty fee. This ongoing fee is a primary way that Carbones Pizzeria generates revenue from its franchise system, in addition to initial franchise fees.
The consistent weekly payment schedule means franchisees must manage their cash flow to ensure timely royalty payments. It also allows Carbones Pizzeria to maintain a steady revenue stream, which supports ongoing services and brand development. This is a fairly standard practice in the franchise industry, where royalties are typically paid weekly or monthly.