What reports must accompany royalty payments to Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
he end of each month. Franchisor shall aggregate its calculation of Gross Sales to include all of Franchisee's Carbone's Pizzeria restaurants during each month. Notwithstanding the foregoing, sales of alcohol by Franchisee at a facility which is a "fully licensed liquor establishment" licensed to sell alcohol shall not be included in the calculation of Gross Sales. Remittance of the Royalty shall be accompanied by reports of Gross Sales and other data upon forms provided by Franchisor from time-to-time. Any due date for payment on a non-business day shall be due the immediately following business day.
- d. Franchisor may collect all amounts due under this Agreement via electronic funds transfer/debit. Franchisee shall execute the Electronic Funds Transfer/Debit Authorization attached to this Agreement as Exhibit A. Franchisor reserves the right, without notice to Franchisee, to independently access the Restaurant's accounting and financial systems and data or any accounting or financial systems used or required by Franchisor for the Carbone System to determine Gross Sales and fees due to Franchisor under this Agreement, and Franchisee shall grant Franchisor access to all such accounting and financial systems and data.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, royalty payments must be accompanied by reports of Gross Sales and other data on forms provided by Carbones Pizzeria. These reports are essential for Carbones Pizzeria to accurately calculate the royalties due.
In addition to the monthly royalty payments, Carbones Pizzeria franchisees must also furnish a full and complete sales report for the previous month by the 5th of each month. This report must be in a format and require information as Carbones Pizzeria may require from time to time. Franchisees must also furnish Carbones Pizzeria with a financial statement for each quarter and annually in a form required by Carbones Pizzeria, and provide other additional financial statements as Carbones Pizzeria may determine from time to time.
Carbones Pizzeria also reserves the right to independently access the Restaurant's accounting and financial systems and data to determine Gross Sales and fees due. If a franchisee fails to report Gross Sales timely, withholds access to accounting systems, or fails to pay amounts due, Carbones Pizzeria may debit the franchisee's account for 110% of the Royalty fees and Advertising Contributions last paid.