Does Carbones Pizzeria have the right to use the advertising fund for local and regional promotions?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Franchisor may use monies in the Carbone's Pizza Advertising Fund for any purpose that promotes the Carbone System, and its Names and Marks, 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 Franchisor's 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.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria has the right to use the advertising fund for local and regional promotions. The document states that the franchisor may use the monies in the Carbone's Pizza Advertising Fund for any purpose that promotes the Carbone System, its Names and Marks, including the costs of preparing and conducting local, regional, or national media of Franchisor's choice, and local and regional promotions.
This means that the advertising fees, which are 1% of monthly Gross Sales (but not due on Gross Sales exceeding $2,000,000 in any calendar year), can be used by Carbones Pizzeria for various advertising and marketing activities. These activities include creating and placing consumer advertising, purchasing marketing-related technology platforms, and conducting local, regional, or national media campaigns. The franchisor has discretion over how these funds are spent to promote the Carbone's Pizza system.
For a prospective franchisee, this indicates that a portion of their gross sales will contribute to a collective advertising fund managed by Carbones Pizzeria. While the franchisee contributes to this fund, the franchisor has broad authority over how the funds are used, including for local and regional promotions. The franchisee should be aware that they may not have direct control over the specific advertising campaigns or strategies implemented, but their contributions support the overall marketing efforts of the Carbone's Pizzeria brand.