When is the royalty fee for Carbones Pizzeria payable?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6. OTHER FEES
| (Column 1) Type of Fee1 | (Column 2) Amount | (Column 3) Due Date | (Column 4) Remarks |
|---|---|---|---|
| Royalty | 4% of Gross Sales on the initial $1,000,000 in Gross Sales per year, 3% of Gross Sales on the next $1,000,000 per year and 2% of Gross Sales on any additional Gross Sales over $2,000,000 per year. | Payable monthly on 10th day following the month covered | Gross Sales includes all revenues from the operation of the Restaurant including any delivery or off premises sales. Gross Sales do not include sales tax or use tax, non-food vending machine sales, revenue from alcoh |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the royalty fee is payable monthly. Specifically, it is due on the 10th day following the month that the sales covered by the royalty fee occurred.
Carbones Pizzeria calculates the royalty fee based on a percentage of gross sales. The royalty is 4% of Gross Sales on the initial $1,000,000 in Gross Sales per year, 3% of Gross Sales on the next $1,000,000 per year and 2% of Gross Sales on any additional Gross Sales over $2,000,000 per year.
Gross sales include all revenues from the operation of the restaurant, including any delivery or off-premises sales. However, gross sales do not include sales tax or use tax, non-food vending machine sales, revenue from alcohol sales, and discounts. This means that franchisees will need to accurately track their sales and deductions to calculate the royalty fee correctly and submit it by the 10th of each month.