When is the royalty fee for a Carbones Pizzeria franchise payable monthly?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the royalty fee is payable monthly. Specifically, the royalty payments are due on the 10th day following the end of each month. This means that Carbones Pizzeria franchisees must calculate their gross sales for the previous month and remit the appropriate royalty payment by the 10th of the current month.

This consistent monthly payment schedule helps Carbones Pizzeria maintain a steady revenue stream. For the franchisee, it necessitates careful tracking of gross sales and timely submission of payments to avoid potential late fees or penalties. The FDD also specifies that if any payment due date falls on a non-business day, the payment is due on the immediately following business day.

Furthermore, the royalty is calculated based on a tiered percentage of gross sales. The royalty is 4% of total Gross Sales on the initial $1,000,000 in Gross Sales per calendar year, at which point the Royalty is reduced to 3% of Gross Sales on the next $1,000,000 per calendar year, at which point the Royalty is reduced to 2% of Gross Sales over $2,000,000 in such calendar year. Understanding this structure is crucial for franchisees to forecast their monthly expenses and manage their cash flow effectively. Franchisees should also note that 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.

Carbones Pizzeria also requires franchisees to submit reports of gross sales and other data along with their royalty payments, using forms provided by the franchisor. This ensures transparency and allows Carbones Pizzeria to verify the accuracy of the reported sales figures. Additionally, Carbones Pizzeria has the right to independently access the Restaurant's accounting and financial systems and data 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.