Are sales of alcohol included in the gross sales calculation for Carbones Pizzeria royalty fees?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, sales of alcohol are generally excluded from the calculation of gross sales for royalty fee purposes under specific conditions. Specifically, if the Carbones Pizzeria location is a "fully licensed liquor establishment" authorized to sell alcohol, then the revenue from those alcohol sales is not included when calculating the gross sales upon which the royalty is based. This could significantly impact the royalty fees paid by a franchisee, especially if alcohol sales constitute a substantial portion of their revenue.

This exclusion offers a potential financial benefit to franchisees who operate fully licensed liquor establishments, as it lowers the base upon which their royalty fees are calculated. However, it's important to note that this exclusion only applies if the franchisee has the appropriate licenses to sell alcohol. If a Carbones Pizzeria franchisee sells alcohol without the required licenses, those sales would likely be included in the gross sales calculation.

It is important for prospective Carbones Pizzeria franchisees to understand the specific requirements for operating a fully licensed liquor establishment in their area and to factor this into their financial projections. Franchisees should also confirm with Carbones Pizzeria what documentation or reporting is required to verify that alcohol sales are properly excluded from gross sales calculations. This ensures compliance with the franchise agreement and accurate royalty payments.