factual

What reports must accompany the royalty remittance for a Carbones Pizzeria franchise?

Carbones_Pizzeria Franchise · 2025 FDD

Answer from 2025 FDD Document

Remittance of the Royalty shall be accompanied by reports of Gross Sales and other data upon forms provided by Franchisor from time-to-time.

Source: Item 23 — RECEIPTS (FDD pages 30–116)

What This Means (2025 FDD)

According to the 2025 Carbones Pizzeria FDD, when remitting royalty payments, a franchisee must include 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 owed, which are based on a percentage of the franchisee's gross sales.

Carbones Pizzeria also has the right to independently access the restaurant's accounting and financial systems to determine gross sales and fees due. Franchisees are required to grant access to these systems. If a franchisee fails to report gross sales in a timely manner or withholds access to accounting data, Carbones Pizzeria may debit the franchisee's account for 110% of the royalty fees and advertising contributions last paid. This highlights the importance of accurate and transparent reporting to avoid penalties.

In addition to the monthly royalty payments and accompanying sales reports, Carbones Pizzeria requires franchisees to furnish a full and complete sales report by the 5th of each month for the previous month. Franchisees must also provide quarterly and annual financial statements in a form required by Carbones Pizzeria, along with any other additional financial statements requested from time to time. All operating records must be maintained and provided according to Carbones Pizzeria's requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.