How often are royalties paid to Carbones Pizzeria by franchisees?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company receives royalty payments weekly from its franchisees. These royalties are calculated as a percentage of the franchisee's sales. Carbones Pizzeria recognizes this royalty revenue each week based on the sales reported by the franchisee.

This weekly payment schedule means that franchisees must maintain consistent cash flow to meet their royalty obligations. It also allows Carbones Pizzeria to have a steady and predictable income stream from its franchise operations. This arrangement is fairly typical in the franchise industry, as it allows franchisors to promptly collect their share of revenue and provide ongoing support and services to franchisees.

Prospective franchisees should carefully consider the implications of weekly royalty payments on their business's financial management. They should ensure they have sufficient working capital to cover these payments, especially during the initial stages of operation when sales may be lower. Understanding the percentage of sales required for royalties and factoring it into their financial projections is crucial for the long-term success of a Carbones Pizzeria franchise.