What is the purpose of the Carbones Pizzeria advertising fund?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The purpose of the fund is to develop marketing and advertising programs that benefit the Carbone's Pizza brand. This means we may use monies in the fund for any purpose that promotes the franchise system, and our trademarks, including the creation, production and placement of consumer advertising; purchase of marketing related technology platforms, such as social media management, market research, consumer insights and analytics; costs of preparing and conducting local, regional or national media of our choice, including: television, radio, internet, magazine, direct mail and newspaper, billboard, social media and digital advertising, direct mail campaigns, and other public relations activities; developing and/or hosting an internet web page or similar activities; administering advertising programs, direct mail and other media advertising; in-house staff assistance and related administrative costs; local and regional promotions; public relations campaigns including the cost of retaining public relations firms; consumer and market research (including surveys and sampling); and other advertising and marketing activities.
We currently use a design firm that produces our advertising materials. However, we may change this firm at any time. Advertising may be placed in local or regional traditional media. We also advertise on billboards and buses. We may also advertise over the Internet including social media channels. We do not guarantee that advertising expenditures from the Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We have no obligation to spend any amount on advertising in your territory. Advertising monies we collect that are not used in one year will be carried over to the next year. Any interest the funds earn will be used for advertising before we use any principal. We may also allocate a portion of the funds to cover the costs of any of our employees who provide services to the fund. We will not spend any portion of any advertising fund for advertising principally designed to solicit the sale of franchises. 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.
Although we do not maintain an advertising council composed of franchisees we do solicit the
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, the advertising fund exists to develop marketing and advertising programs that benefit the Carbones Pizza brand and promote the franchise system. The fund can be used for various purposes, including creating and placing consumer advertising, purchasing marketing-related technology platforms, and conducting local, regional, or national media campaigns. These campaigns may include television, radio, internet, magazine, direct mail, newspaper, billboard, social media, digital advertising, and public relations activities. The fund also covers the costs of developing and hosting websites, administering advertising programs, providing in-house staff assistance, and conducting consumer and market research.
Carbones Pizzeria does not guarantee that advertising expenditures from the fund will directly benefit each franchisee on a pro rata basis, or at all, and has no obligation to spend any amount on advertising in a franchisee's specific territory. Advertising monies collected but not used in a given year will be carried over to the next year, and any interest earned by the funds will be used for advertising before any principal is used. A portion of the funds may also be allocated to cover the costs of employees who provide services to the fund. The advertising fund will not be used to solicit the sale of franchises.
Although Carbones Pizzeria does not audit the fund, they will provide an annual accounting of how the fund proceeds were spent in the previous year upon request. Franchisees pay an advertising fee of 1% of monthly Gross Sales up to $2,000,000, with no advertising fee on Gross Sales exceeding that amount in any given year. These funds are kept in a separate bank account from the company's general operating funds, and company-owned restaurants also contribute 1% of their sales to the advertising fund. While Carbones Pizzeria does not maintain a formal advertising council, they do solicit input from franchisees regarding advertising methods and expenditures, with decisions made based on franchisee consensus. In 2024, the fund was used for email and online advertising (41.96%), advertising creative and production services (28.26%), sports advertising (26.58%), and print advertising (3.20%).