When are royalty fees from Carbones Pizzeria franchisees due?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, there are different due dates for different types of royalty fees. Continuing franchise fee royalties are due on or before the first day of each week, covering sales from the preceding week. Advertising fee royalties have a slightly different schedule, being due on or before Tuesday of each week for the sales of the previous week.

This means a Carbones Pizzeria franchisee must maintain diligent accounting practices to track sales and remit the correct royalty amounts promptly. The distinction between the due dates for continuing franchise fees and advertising fees adds a layer of complexity to the payment process. Franchisees need to be aware of these deadlines to avoid potential late fees or other penalties.

Carbones Pizzeria's FDD also states that receivables not received on time are subject to additional scrutiny from management and may be charged interest at rates up to 12% annually. This underscores the importance of timely payments and the potential financial consequences of late remittances. Franchisees should ensure they have systems in place to meet these deadlines to maintain a good financial standing with the franchisor.

It is common in the franchise industry for royalty fees to be calculated as a percentage of gross sales and remitted on a weekly or monthly basis. Carbones Pizzeria's weekly payment schedule for both types of royalties is more frequent than some other franchises, requiring franchisees to manage their cash flow accordingly.