How does Carbones Pizzeria recognize revenue from sales at Company-owned restaurants?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company recognizes revenue from sales at its company-owned restaurants at the time of the sale. This means that when a customer purchases food or beverages at a company-owned Carbone's Pizzeria location, the revenue is recorded immediately.

This accounting practice is standard for restaurant sales, as the service and product are provided simultaneously. The customer receives their meal, and Carbone's Pizzeria receives payment, thus triggering revenue recognition. This differs from how Carbones Pizzeria recognizes revenue from franchise fees, which are recognized over the term of the franchise agreement.

For a prospective franchisee, this information is primarily relevant for understanding how the franchisor manages its own revenue streams from company-owned stores, which can provide insight into the overall financial health and accounting practices of Carbones Pizzeria. It also highlights the difference in revenue recognition between immediate sales and long-term franchise agreements.