Does Carbones Pizzeria have the right to use the advertising fund for public relations campaigns?
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 Carbones Pizzeria's 2025 Franchise Disclosure Document, the franchisor has the right to use the advertising fund for public relations campaigns. Franchisees are required to pay an Advertising Fee of one percent (1%) of monthly Gross Sales, although this fee is not applied to Gross Sales exceeding $2,000,000 in any calendar year.
Carbones Pizzeria has broad discretion over how the Advertising Fund is used. The funds can be used for any purpose that promotes the Carbone System, Names, and Marks. This includes creating and placing consumer advertising across various media such as television, radio, internet, magazines, and social media.
Specifically, Carbones Pizzeria is authorized to use the advertising fund for public relations campaigns, including retaining public relations firms. They can also use the fund for market research, technology platforms, and administrative costs related to advertising and marketing activities. This gives Carbones Pizzeria significant control over the advertising and marketing strategies for the franchise system, which may benefit franchisees through increased brand awareness and customer traffic.