Will Carbones Pizzeria provide an annual accounting of how the advertising fund proceeds were spent?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we do not audit the fund, at your request, we will make available to you an annual accounting that shows how the fund proceeds were spent for the previous year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, while Carbones Pizzeria does not audit the advertising fund, they will provide an annual accounting of how the fund's proceeds were spent in the previous year if a franchisee requests it.
This means that as a Carbones Pizzeria franchisee, you have the right to request and receive a report detailing how the advertising fees you and other franchisees contribute are being utilized. This provides a degree of transparency, allowing you to see where the money is being allocated, such as for consumer advertising, marketing technology, or administrative costs.
It's important to note that Carbones Pizzeria does not guarantee that advertising expenditures will directly benefit any specific franchisee or territory. The funds are used to promote the Carbone's Pizza brand as a whole. While the FDD states that Carbones Pizzeria does not maintain an advertising council composed of franchisees, they do solicit input from franchisees regarding advertising methods and expenditures, and decisions are made based upon consensus of franchisees.
For example, in 2024, the advertising fund expenditures included 41.96% for email and online advertising, 28.26% for advertising creative and production services, 26.58% for sports advertising, and 3.20% for print advertising. This breakdown gives potential franchisees an idea of how the advertising fund has been used recently, though future allocations may vary.